"On September 22, we updated our outlook for the third quarter, and today we reported results in line with that update," Norman Axelrod, the company's chairman and CEO said at yesterday's earnings webcast. "We are obviously disappointed with our third-quarter performance.

"We experienced significant traffic declines throughout the quarter, as the initiatives we had undertaken to emphasize fashion and better price points in our merchandise assortment resulted in weaker value perception," Axelrod told analysts yesterday. "Looking at the rest of the year, we believe we have taken appropriate steps to ensure that our value message is clear and consistent in our stores and in our marketing.

"The launch of the Nate Berkus Collection has been well-received," Axelrod told analysts. "We are excited about the fresh appeal this brand, offered exclusively at Linens 'n Things, has and the potential it brings to drive traffic to our stores."