CHICAGO – Home goods retailer Linens 'n Things Inc. (LIN) on Friday warned it would report a quarterly loss instead of the profit it had expected because of a steep drop in sales.
The retailer said it now expects a loss of 11 cents to 15 cents per share, compared with its previous forecast for a profit of 3 cents to 9 cents per share.
It expects sales at stores open at least a year to be down in the mid- to high-single-digit range for the quarter, which ends July 2.
The retailer said in April that it was bringing in new, fashionable name-brand merchandise in hopes of getting more shoppers into its stores, but the transition has proved tougher than the company expected.
"However, we are encouraged by the response to the new product introductions to date and believe that our back-to-school assortments are well-positioned," Norman Axelrod, chairman and chief executive, said in a statement.