Branded home furnishings merchandiser Linens 'n Things Inc announced that sales for its fourth quarter 2005 were approximately $921 million, increasing 5.2 percent from last year's sales of $876 million.
Comparable net sales for the fourth quarter ending December 31, 2005 declined 2.2 percent.
Previously, the company reported an 8.4 percent decline in October comparable net sales.
The company reported a 2.2 percent comparable net sales decline for the quarter as a result of the significant change in sales trends experienced during November and December, attributed primarily to its stronger merchandising initiatives and product mix.
The company expects the gross margin rate to be generally in line with last year.
Furthermore, Linens 'n Things advertising expenditure was comparable to last year with one less promotional event.
Given the decline in comparable net sales, the company expects its SG&A as a percent of sales to increase moderately when compared with the previous year.
During the fourth quarter, the company opened 16 new stores and closed one store, operating a total of 542 stores at the end of the year and increasing square footage to 18.1 million from 16.7 million last year.
Due to the company's actual sales performance and gross margin expectations, Linens 'n Things currently expects that it will well exceed the $140 million adjusted EBITDA condition to the debt financing required for consummation of the merger with the Apollo Management group.
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