"Our comp sales for the holiday season were strong, with sales driven primarily by an increase in traffic, as our average transaction for the quarter declined slightly," said Norman Axelrod, chairman and CEO, at Linens 'n Things earnings conference call on Wednesday. "We had a strong response to our gift-giving and holiday assortments."
There was some contrast between the textile side of the business, the "linens," and the home goods, or "things" side. "Our core textile business was flat," said Jack Moore, president and COO, "while our specialty niche businesses exhibited some strength during the quarter. Our Things business, however, exhibited accelerated sales growth during the quarter, led by our functional housewares business."
Moore noted that customer response to the company's newly introduced furniture offerings was healthy. "We expanded furniture to about 200 stores in the fourth quarter, generating strong comp sales," he said. "About 300, or two-thirds of the chain, now offer a full assortment in our furniture category. We're also expanding other categories, including area rugs, home environment, comfort sleep and others."
During the fourth quarter, the company opened 13 new stores, compared with five during the same period last year. In all of 2004, Linens 'n Things opened 54 stores and closed two, compared with opening 58 stores openings and nine closings during 2003. Currently, the company operates 492 stores in 45 states and five provinces in the United States and Canada, and it expects to open about 50 new stores in North America in 2005.
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