The bloom came off the rose for
Tuesday as the gift company forecast fourth-quarter revenue below analysts' estimates because of weaker-than-expected home and garden sales.
The Westbury, N.Y.-based company said it expected revenue of about $161 million, up 4% from the year-ago period.
"Customer demand in the home and garden gift sector has remained below our expectations. We believe this can be attributed to increasingly competitive market conditions within the sector as well as internal merchandising and marketing issues," the company said in a statement. "We have completed a thorough review of our home and garden business and have implemented plans that, we believe, will significantly enhance its product offering and marketing programs. Based on early results of these efforts, we are confident that we can reinvigorate this segment of our business and achieve sustainable revenue growth in fiscal 2005 and beyond."
Analysts expect the company to earn $11.8 million, or 18 cents a share, on revenue of $169.4 million.
The company will release fourth-quarter and full-year results before the market opens on August 5.
Shares fell 43 cents, or 4.6%, to $8.90 in premarket trading.