Linens 'n Things (NYSE:LIN), another beneficiary of the homeownership trend, reported earnings that many investors might want to hang their hats on. Consequently, the stock this morning traveled to a new high for the year.
The company reported fourth-quarter earnings of $46.1 million, or $1.02 per share, compared to $40.2 million, or $0.90 per share, in the same quarter a year earlier. Sales rose 9% to $788.3 million, with same-store sales up 4.7%.
When it comes to sheets, towels, small appliances, and bathroom scales, it looks like consumers visited specialty retail venues, such as Linens 'n Things and rival Bed, Bath & Beyond (NASDAQ:BBBY), instead of defecting to deeper discount competitors, such as Wal-Mart (NYSE:WMT), where you can get everything but the kitchen sink.
Case in point, Linens 'n Things said that its sales jumped not only on larger average transactions, but also on increased shopper traffic, implying that heightened popularity helped drive sales. The company cited a warm reception for its holiday merchandise, as well as other factors, including improved coordination among its merchandising, marketing, and supply chain initiatives.
With the economy on the upswing and the consumer in a better mood, any home-decorating improvements that were put off during the recession could get put back on the to-do list in the months to come. Continued success in luring customers into its stores -- and giving them what they're looking for -- could help Linens 'n Things clean up.
Are you working to spiff up your new home? Talk with other Fools about home redecorating on the Interior Design/Decorating discussion board.
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