LNT sees improvements in 2Q results
Pamela Brill -- Gifts & Dec, July 17, 2002
Clifton, NJ — At its second-quarter conference call today, Linens 'n Things said that its initiatives in operations and merchandising have continued to make improvements at the specialty retailer.
Norman Axelrod, chairman and ceo, said that the retailer has had its best in-stock levels in two years, which have improved 10 percent since the beginning of the year. The initiative to increase its staff on the selling floor by 10 percent has also been achieved for the most part, he added.
Overall, business has shown improvement, added Steve Silverstein, president, and it will continue to develop its textiles category. One area is building on its brand strength. Axelrod said that the Nautica license will expand, and two patterns are highlighted for the Back-to-School season. Consumer demand for specialty bedding, he added, has resulted in developing exclusive product for the stores, and the window category also continues to improve.
"The textiles business has begun to gain strength," Axelrod added.
The company announced net income for the second quarter ended June 29 of $5.6 million, or $0.13 per share, on a fully diluted basis, compared with $2.1 million, or $0.05 per share, for the same period last year.
Last year's results included a pre-tax charge of $4.0 million, or an after-tax charge of $0.06 per share, which related to settlement of California litigation. Net sales increased 19.1 percent to $461.9 million for the second quarter ended June 29, up from $387.7 million for the same period last year. Comp-store net sales for the second quarter increased 3.6 percent.
Net income for the 26-week period ended June 29 was $10.7 million, or $0.26 per share on a fully diluted basis, compared with $6.8 million, or $0.16 per share, for the same period last year, which included the after-tax litigation charge of $0.06 per share. Net sales increased 19.8 percent to $918.8 million for the 26-week period ended June 29, up from $767.0 million for the same period last year. Comp-store net sales for the 26-week period ended June 29, increased 3.1 percent.
For the third and fourth quarter of 2002, comp-store net sales are currently being targeted to increase in the low- to mid-single-digit range.
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