|SECURITIES AND
EXCHANGE COMMISSIONWashington, D.C. 20549


FORM 10-Q


QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934


For the quarterly
period ended September 28, 2002


Commission File Number     
     1-12381


Linens n Things,
Inc.(Exact name of Registrant as specified in its charter)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Delaware(State or other jurisdiction of incorporation or organization) |  | 22-3463939(I.R.S. Employer Identification Number)
|---------------------------------------------------------------------- |  | -------------------------------------------------

|6 Brighton Road, Clifton, New Jersey
(Address of principal executive offices) |  | 07015
(Zip Code)
|----------------------------------------------------------------------------- |  | ----------------

| | (973)  778-1300(Registrants telephone number, including area code) | 
| | ------------------------------------------------------------------- | 

|Indicate by check mark
whether the Registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Yes     
  X          
           | No     
          
            
| | -------------------------------------- | ------------------------------------

|Number of shares outstanding of the issuers
Common Stock:
|----------------------------------------------------------

| | ClassCommon Stock, $0.01 par value | Outstanding at November 4, 2002
44,072,925
| | ---------------------------------- | ------------------------------------------

---

|INDEX
|-----

|Part I.  Financial Information | Page No.
|------------------------------ | --------

| | Item 1. |  | Financial Statements | 
| | ------- |  | -------------------- | 

| |  |  | Condensed Consolidated Statements of Operations for the
     Thirteen and Thirty-Nine Weeks Ended September 28, 2002
     and September 29, 2001 | 3
| |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------ | -

| |  |  | Condensed Consolidated Balance Sheets as of September 28, 2002,
     December 29, 2001 and September 29, 2001 | 4
| |  |  | ------------------------------------------------------------------------------------------------------------- | -

| |  |  | Condensed Consolidated Statements of Cash Flows for the
     Thirty-Nine Weeks Ended September 28, 2002
     and September 29, 2001 | 5
| |  |  | ----------------------------------------------------------------------------------------------------------------------------------- | -

| |  |  | Notes to Condensed Consolidated Financial
Statements | 6-9
| |  |  | ---------------------------------------------------- | ---

| |  |  | Independent Auditors Review Report | 10
| |  |  | ----------------------------------- | --

| | Item 2. |  | Managements Discussion and Analysis of
        Financial Condition and Results of Operations | 11-15
| | ------- |  | --------------------------------------------------------------------------------------------- | -----

| | Item 3. |  | Quantitative and Qualitative Disclosures about Market Risk | 16
| | ------- |  | ---------------------------------------------------------- | --

| | Item 4. |  | Controls and Procedures | 16
| | ------- |  | ----------------------- | --

|Part II.  Other Information | 
|--------------------------- | 

| | Item 6. |  | Exhibits and Reports on Form 8-K | 17
| | ------- |  | -------------------------------- | --

| |  |  | Signatures | 17
| |  |  | ---------- | --

| |  |  | Certifications | 18-19
| |  |  | -------------- | -----

---

|PART  -  I  FINANCIAL INFORMATION

Item 1.  
Financial Statements

LINENS N THINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                            
|--------------------------------------------
|                                            
|September 28,2002                           
|                                            
|Net sales                                   
|Cost of sales, including buying and         
|distribution costs                          
|                                            
|Gross profit                                
|Selling, general and administrative expenses
|Litigation charge                           
|                                            
|Operating profit                            
|Interest income                             
|Interest expense                            
|                                            
|Interest expense, net                       
|                                            
|Income before provision for income taxes    
|Provision for income taxes                  
|                                            
|Net income                                  
|                                            
|Basic earnings per share                    
|                                            
|Diluted earnings per share                  
|                                            
|                                            

|See accompanying notes to
condensed consolidated financial statements.



3
|---------------------------------------------------------------------------

---

|LINENS N THINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
|-----------------------------------------------------------------------------------------------------------------

|                                                               
|---------------------------------------------------------------
|                                                               
|                                                               
|Assets                                                         
|Current assets:                                                
|Cash and cash equivalents                                      
|Accounts receivable                                            
|Inventories                                                    
|Prepaid expenses and other current assets                      
|Current deferred taxes                                         
|                                                               
|Total current assets                                           
|Property and equipment, net                                    
|Goodwill, net                                                  
|Deferred charges and other noncurrent assets, net              
|                                                               
|Total assets                                                   
|                                                               
|Liabilities and Shareholders Equity                           
|Current liabilities:                                           
|Accounts payable                                               
|Accrued expenses and other current liabilities                 
|Short-term borrowings                                          
|                                                               
|Total current liabilities                                      
|Deferred income taxes and
other long-term liabilities          
|                                                               
|Total liabilities                                              
|Shareholders equity:                                          
|Preferred stock, $0.01 par value; 1,000,000 shares             
|authorized; none issued and outstanding                        
|                                                               
|Common stock,
 $0.01 par value;                                
|135,000,000 shares authorized; 44,251,869 shares issued and    
|43,978,739 shares outstanding at September 28, 2002; 40,872,008
|shares issued and 40,624,374 shares outstanding at December 29,
|2001; and 40,848,324 shares issued and 40,604,655 shares       
|outstanding at September 29, 2001                              
|                                                               
|Additional paid-in capital                                     
|Retained earnings                                              
|Accumulated other comprehensive loss                           
|Treasury stock, at cost; 273,130 shares at September 28, 2002, 
|247,634 shares at December 29, 2001, and 243,669 shares at     
|September 29, 2001                                             
|                                                               
|                                                               
|Total shareholders equity                                     
|                                                               
|Total liabilities and shareholders equity                     
|                                                               

|See accompanying notes to  condensed
consolidated financial statements.



4
|----------------------------------------------------------------------------

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|LINENS N THINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
|-----------------------------------------------------------------------------------------------------------------

|                                                     | Thirty-Nine Weeks Ended     
|---------------------------------------------------- | ----------------------------
|                                                     |                             
|                                                     | September 28,           2002
|                                                     |                             
|Cash flows from operating activities:                |                             
|Net income                                           |                             
|Adjustments to reconcile net income to net           |                             
|cash used in operating activities:                   |                             
|Depreciation and amortization                        |                             
|Deferred income taxes                                |                             
|Loss on disposal of assets                           |                             
|Federal tax benefit from common  stock issued under  |                             
|stock incentive plans                                |                             
|Changes in assets and liabilities:                   |                             
|Decrease (increase) in accounts receivable           |                             
|Increase in inventories                              |                             
|Increase in prepaid expenses and other current       |                             
|assets                                               |                             
|Increase in deferred charges and other               |                             
|noncurrent assets                                    |                             
|Increase in accounts payable                         |                             
|(Decrease) increase in accrued expenses and          |                             
|other liabilities                                    |                             
|                                                     |                             
|Net cash used in operating activities                |                             
|                                                     |                             
|Cash flows from investing activities:                |                             
|Additions to property and equipment                  |                             
|                                                     |                             
|Cash flows from financing activities:                |                             
|Net proceeds from common stock issuance              |                             
|Proceeds from common stock issued under stock        |                             
|incentive plans                                      |                             
|(Decrease) increase in short-term borrowings         |                             
|Issuance (purchase) of treasury stock                |                             
|                                                     |                             
|Net cash provided by financing activities            |                             
|                                                     |                             
|Effect of exchange rate changes on cash and cash     |                             
|equivalents                                          |                             
|Net increase (decrease) in cash and cash equivalents |                             
|Cash and cash equivalents at beginning of period     |                             
|                                                     |                             
|Cash and cash equivalents at end of period           |                             
|                                                     |                             
|Cash paid during the year for:                       |                             
|Interest (net of amounts capitalized)                |                             
|Taxes                                                |                             

|See accompanying
notes to condensed  consolidated financial statements.



5
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|LINENS N THINGS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.   Basis of  Presentation


The accompanying condensed
consolidated financial statements,  except for the December 29, 2001 consolidated
balance sheet, are  unaudited. In the opinion of management, the accompanying condensed
consolidated  financial statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the financial position of the  Company as
of September 28, 2002 and September 29, 2001  and the results of
operations for the respective thirteen and thirty-nine  weeks then ended and cash flows
for the thirty-nine weeks then ended. The  preparation of financial statements in
conformity with accounting principles  generally accepted in the United States of America
requires management to make  estimates and assumptions that affect the reported amounts
of revenues and  expenses during the reporting period. Actual results could differ from
those  estimates. Because of the seasonality of the specialty retailing business,
operating results of the Company on a quarterly basis may not be indicative of  operating
results for the full year.


These condensed consolidated
financial statements should be read  in conjunction with the Companys audited
consolidated financial statements  for the fiscal year ended December 29, 2001,
included in the  Companys Annual Report on Form 10-K filed with the Securities and
Exchange  Commission. All significant intercompany accounts and transactions have been
eliminated.


2.  Earnings Per Share


The calculation of basic and
diluted earnings per share  (EPS) is as follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                    | Periods ended September 28, 2002
(in thousands, except EPS)
|----------------------------------- | -----------------------------------------------------------
|                                    |                                                            
|                                    | Thirteen Week Period                                       
|                                    |                                                            
|                                    | Income                                                     
|                                    |                                                            
|Basic                               |                                                            
|Effect of outstanding stock options |                                                            
|and deferred stock grants           |                                                            
|                                    |                                                            
|Diluted                             |                                                            
|                                    |                                                            

|                                        | Periods ended September 29, 2001
(in thousands, except EPS)
|--------------------------------------- | -----------------------------------------------------------
|                                        |                                                            
|                                        | Thirteen Week Period                                       
|                                        |                                                            
|                                        | Income                                                     
|                                        |                                                            
|Basic                                   |                                                            
|Effect of outstanding stock options and |                                                            
|deferred stock grants                   |                                                            
|                                        |                                                            
|Diluted                                 |                                                            
|                                        |                                                            

|Options for which the exercise
price was greater than the  average market price of common shares for the period ended
September  28, 2002 and September 29, 2001 were not included in the  computation of
diluted earnings per share. These consisted of options totaling  1,591,000 shares and
1,592,000 shares for the thirteen  weeks and 1,360,000 shares and 1,433,000 shares for
the thirty-nine weeks  ended September 28, 2002 and September 29, 2001,  respectively.
Deferred stock grants excluded in the computation of diluted  earnings per share due to
the application of the treasury stock method totaled  2,600 shares and 23,000 shares for
the thirteen  weeks and 1,000 shares and 17,000 shares for the thirty-nine weeks ended
September 28, 2002 and September 29, 2001, respectively.



6
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|LINENS N THINGS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


3.  Short-Term Borrowing Arrangements


On June 21, 2002, the Company
amended and extended  its $150 million senior revolving credit facility agreement (the Credit
Agreement) with third party institutional lenders to  expire April 20, 2005. The
Credit  Agreement allows for up to $40 million of borrowings from additional  lines of
credit outside of the Credit Agreement. As of September 28,  2002, the additional lines
of credit include committed facilities of  approximately $23 million expiring on June 18,
2003. Interest on all  borrowings is determined based upon several alternative rates,
including a fixed  margin above LIBOR rate. The Credit Agreement contains certain
financial  covenants, including those relating to the maintenance of a minimum tangible
net  worth, a minimum fixed charge coverage ratio, and a maximum leverage ratio. As  of
September 28, 2002, the Company was in compliance with  the terms of the Credit
Agreement. The Credit Agreement limits,  among other things, the amount of cash dividends
the Company may pay.  Under the Credit Agreement, the amount of dividends that the
Company may pay may  not exceed the sum of $25 million plus 50% of the consolidated  net
income for each fiscal quarter, commencing with the fiscal quarter ended  March 30, 2002.
The Company has never paid cash  dividends and does not anticipate paying cash dividends
in the future. The  Company is required under the Credit Agreement to reduce the balance
of  outstanding domestic borrowings to zero for 30 consecutive days during each  period
beginning on December 1st of any fiscal year and ending on  March 15th of
the following fiscal year.  At various times  throughout 2002 and 2001, the Company
borrowed against its credit facility for  seasonal working capital needs. As of September
28, 2002, the  Company had no borrowings under the Credit Agreement and $16.1  million in
borrowings under the additional lines of credit at a  weighted-average interest rate of
4.4%. The Company also  had $27.6 million of letters of credit outstanding as of
September 28, 2002, which were primarily used for merchandise  purchases. The Company is
not obligated under any formal or informal  compensating balance requirements.


4.  Comprehensive Income


Comprehensive income for the
thirteen and thirty-nine weeks ended September 28, 2002 and September 29, 2001 is as
follows ($ in 000's):
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                           | Thirteen Weeks Ended       | Thirty-Nine Weeks Ended   
|-------------------------- | -------------------------- | --------------------------
|                           |                            |                           
|                           | September 28,         2002 | September 29,         2001
|                           |                            |                           
|Comprehensive Income:      |                            |                           
|Net Income                 |                            | $ 18,280                  
|Other comprehensive (loss) |                           
|income -- Foreign currency |                           
|translation adjustment     |                            | (192                      
|                           |                            |                           
|Comprehensive income       |                            | $ 18,088                  
|                           |                            |                           

|5.  Restructuring and Asset
Impairment Charge



During the fourth quarter of
fiscal 2001, the Company formulated  a strategic initiative designed to improve store
performance and profitability.  The initiative called for the closing of 17 stores that
did not meet the  Companys performance objectives. In connection with the
initiative, the  Company recorded a pre-tax restructuring and asset impairment charge of
$37.8  million ($23.7 million after-tax) in the fourth quarter of fiscal 2001. A  pre-tax
reserve of $20.5 million was established for estimated lease commitments  for stores to
be closed. The reserve is included in accrued expenses. The  reserve considered estimated
sublease income. Because all of the stores were  leased the Company is not responsible
for the disposal of property other than  fixtures and leasehold improvements. A pre-tax
charge of $9.5 million was  recorded as a reduction in property and equipment for fixed
asset impairments.  The fixed asset impairments represented fixtures and leasehold
improvements. A  pre-tax reserve of $4.0 million was established for other estimated
miscellaneous store closing costs. Additionally, a pre-tax charge of $3.8  million was
recorded in cost of sales for estimated inventory markdowns below  cost for the stores to
be closed.


Certain components of the
restructuring and asset impairment  charge were based upon estimates and may be subject
to change in future periods.  The Company currently expects to close most of these stores
by the end of fiscal  2002 or shortly thereafter. As of September 28, 2002, five stores
have been  closed.



7
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|LINENS N THINGS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




The following table displays a
rollforward of the activity and  significant components of the restructuring and asset
impairments charge and the  reserves remaining as of September 28, 2002 ($ in millions):
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                     | Recorded(Audited) | Deductions     2001 | Remainingat 12/29/01(Audited) | Usage   2002 | Remaining  at 9/28/02(Unaudited)
|-------------------- | ----------------- | ------------------- | ----------------------------- | ------------ | --------------------------------
|                     |                   |                     |                               |              |                                 
|Non-Cash Components: |                   |                     |                               |              |                                 
|Asset impairment     |                   | $     9.5           |                               | $  (9.5      | )                               
|Inventory markdown   |                   | 3.8                 |                               | (3.8         | )                               
|                     |                   |                     |                               |              |                                 
|Subtotal             |                   | 13.3                |                               | (13.3        | )                               
|                     |                   |                     |                               |              |                                 
|                     |                   |                     |                               |              |                                 
|Cash Components:     |                  
|Lease commitments    |                   | 20.5                |                               | --           |                                 
|Other                |                   | 4.0                 |                               | --           |                                 
|                     |                   |                     |                               |              |                                 
|Subtotal             |                   | 24.5                |                               | --           |                                 
|                     |                   |                     |                               |              |                                 
|Total                |                   | $    37.8           |                               | $  (13.3     | )                               
|                     |                   |                     |                               |              |                                 

|The 2002 usage primarily consists
of the settlements for lease  obligations and other miscellaneous closing costs. The
deductions to the reserve  balance during 2001 included fixed asset write-offs totaling
$9.5 million and  store inventory markdowns taken totaling $3.8 million.



6.  Goodwill and Other Intangible
Assets - Adoption of Statement 142


In fiscal 2002, the Company
adopted Statement of Financial  Accounting Standards (SFAS) No. 142, Goodwill
and Other  Intangible Assets (SFAS No. 142). Under SFAS No. 142,
goodwill  amortization ceases upon adoption of the new standard and intangible assets
with  indefinite useful lives will no longer be amortized. Had the application of the
non-amortization provisions of SFAS No. 142 not been adopted, net income would  have been
reduced by approximately $131,000 and $394,000 for the thirteen and thirty-nine weeks ended
September 28,  2002, respectively. SFAS No. 142 requires an initial goodwill  impairment
assessment upon adoption and annual impairment tests thereafter. The  Company completed
the initial impairment test of goodwill and  has concluded that there was no impairment
of goodwill.


Set forth below are the Companys
net income and net  income per share as reported and as if amortization
expense related  to goodwill had not been expensed in accordance with the provisions of
SFAS No.  142 ($ in thousands, except EPS):
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                 | Thirteen Weeks Ended      | Thirty-Nine Weeks Ended  
|-------------------------------- | ------------------------- | -------------------------
|                                 |                           |                          
|                                 | September 28,        2002 | September 29,        2001
|                                 |                           |                          
|                                 | (Unaudited)               | (Unaudited)              
|                                 |                           |                          
|Reported net income              |                           | $     18,280             
|Add back:  Goodwill amortization |                           | --                       
|                                 |                           |                          
|Adjusted net income              |                           | $     18,280             
|                                 |                           |                          
|Basic earnings per share:        |                          
|Reported net income              |                           | $         0.42           
|Goodwill amortization            |                           | --                       
|                                 |                           |                          
|Adjusted net income              |                           | $         0.42           
|                                 |                           |                          
|Diluted earnings per share:      |                          
|Reported net income              |                           | $         0.41           
|Goodwill amortization            |                           | --                       
|                                 |                           |                          
|Adjusted net income              |                           | $         0.41           
|                                 |                           |                          

|8
|-

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|LINENS N THINGS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



7.  Recent Accounting Pronouncements


At a 2001 meeting of the Financial
Accounting Standards Board (FASB) Emerging  Issues Task Force (EITF),
a consensus was reached with  respect to the issue of Accounting for Certain Sales
Incentives, including point of sale coupons, rebates and free merchandise. The
consensus  included a conclusion that the value of such sales incentives that result in a
reduction of the price paid by the customer should be netted against sales and  not
classified as a sales or marketing expense. In April 2001, the  EITF delayed the
effective date for this consensus to 2002. The Company already  includes such sales
incentives as a reduction of sales and records free  merchandise in cost of goods sold as
required by the new EITF consensus.


In June 2001, the FASB issued SFAS
No. 143,  Accounting for Asset Retirement Obligations (SFAS No.  143).
SFAS No. 143 addresses financial accounting and reporting for  obligations associated
with the retirement of tangible long-lived assets and the  associated asset retirement
costs. This statement requires that the fair value  of a liability for an asset
retirement obligation be recognized in the period in  which it is incurred if a
reasonable estimate of fair value can be made. This  statement is effective for the
Company in fiscal 2003. The Company is currently  evaluating SFAS No. 143 but does not
anticipate that the impact of the new  pronouncement would have a material impact on the
Companys  consolidated financial statements.


In August 2001,  the FASB issued
SFAS No. 144,  "Accounting  for the Impairment or Disposal of Long-Lived
Assets" ("SFAS No. 144").  SFAS No.  144  supercedes  SFAS No. 121,
"Accounting  for the Impairment of Long-Lived  Assets and for Long-Lived  Assets to
Be Disposed Of" ("SFAS No.  121"),  but retains  many of its  fundamental
provisions.  SFAS No.144 also  expands the scope of  discontinued  operations  to include
more  disposal  transactions,  and will impact the  presentation  of future store
closings,  if any. SFAS No. 144 was effective for the Company for  the first  quarter  of
fiscal  2002.  The  implementation  of SFAS No.  144 did not have a  significant  impact
on the  Company's  financial  statements,  as the impairment  assessment  under SFAS No.
144 is  predominately  unchanged from SFAS No. 121 and the stores closed during the
thirty-nine weeks ended September 28, 2002 did not meet the requirements to be reported
as discontinued operations.



During April 2002,  the FASB
issued SFAS No. 145,  "Rescission of FASB  Statements No. 4, 44, and 64,  Amendment
of FASB Statement No. 13, and  Technical  Corrections"  ("SFAS No. 145").
This Statement  rescinds SFAS No. 4, "Reporting Gains and Losses from
Extinguishment of Debt" and  SFAS No. 44,  "Accounting for Intangible  Assets
of Motor  Carriers".  As part of this Statement it amends FASB Statement No. 13,
"Accounting  for Leases" ("SFAS No. 13"), so that certain lease
modifications  that have economic effects that are similar to sale-leaseback
transactions  are  accounted  for the same way as  sale-leaseback  transactions.
Additionally  SFAS No. 13 is amended so that the original  lessee under an  operating
lease agreement that becomes  secondarily  liable shall  recognize the fair value of the
guarantee  obligation.  This Statement also  amends other existing authoritative
pronouncements to make various technical  corrections,  clarify meanings, or describe
their applicability  under changed  conditions.  The amendment to SFAS No. 13 is
effective for transactions  occurring after May 15, 2002 and the remainder of SFAS  145
is effective for fiscal years  beginning  after May 15, 2002.  The  application of SFAS
No. 145 did not have and is not expected to have a  material impact on the Company's
consolidated financial statements.


In June 2002, the FASB issued SFAS
No. 146, Accounting for  Costs Associated with Exit or Disposal Activities (SFAS
No.  146). This Statement requires companies to recognize costs associated with
exit or disposal activities when they are incurred rather than at the date of a
commitment to an exit or disposal plan. The Company is required to adopt the  provisions
of SFAS No. 146 for exit or disposal activities, if any, initiated  after December 31,
2002. Although the Company believes the adoption of SFAS No.  146 will not impact the
consolidated financial position or results of  operations, it can be expected to impact
the timing of liability recognition  associated with future exit activities, if any.



8.  Reclassification


Certain reclassifications were
made to the fiscal 2001  consolidated financial statements in order to conform to the
fiscal 2002  presentation.



9
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|Independent Auditors Review
Report


The Board of  Directors and
Shareholders
Linens n Things, Inc.:



We have reviewed the condensed
consolidated balance sheets of Linens  n Things, Inc. and Subsidiaries as of
September 28, 2002 and  September 29, 2001, and the related condensed consolidated
statements  of operations for the thirteen and thirty-nine week periods then ended and
the  related condensed consolidated statements of cash flows for the thirty-nine week
periods ended September 28, 2002 and September 29, 2001. These condensed  consolidated
financial statements are the responsibility of the Companys  management.


We conducted our review in
accordance with standards established  by the American Institute of Certified Public
Accountants. A review of interim  financial information consists principally of applying
analytical review  procedures to financial data and making inquiries of persons
responsible for  financial and accounting matters. It is substantially less in scope than
an  audit conducted in accordance with generally accepted auditing  standards, the
objective of which is the expression of an opinion  regarding the financial statements
taken as a whole. Accordingly, we do not  express such an opinion.


Based on our review, we are not
aware of any material  modifications that should be made to the condensed consolidated
financial  statements referred to above for them to be in conformity with accounting
principles generally accepted in the United States of America.


We have previously audited, in
accordance with auditing  standards generally accepted in the United States of America,
the  consolidated balance sheet of Linens n Things, Inc. and Subsidiaries as of
December 29, 2001 (presented herein) and the  related consolidated statements of
operations, shareholders equity, and  cash flows for the year then ended (not
presented herein); and in our report  dated January 30, 2002 we expressed an unqualified
opinion on those  consolidated financial statements. In our opinion, the information set
forth in  the accompanying condensed consolidated balance sheet as of December 29,  2001
is fairly presented, in all material respects, in relation to the  consolidated balance
sheet from which it has been derived.



KPMG LLP
New York, New  York
October 16, 2002



10
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|Item 2.  Managements Discussion
and Analysis of Financial Condition and Results of Operations


LINENS N THINGS, INC.
AND SUBSIDIARIES MANAGEMENTS DISCUSSION AND ANALYSISOF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


The following discussion and
analysis should be read in  conjunction with the consolidated financial statements of the
Company and the  notes thereto appearing elsewhere in this document.


General


Linens n Things, Inc. (the
Company) is one of  the leading national format retailers of home textiles,
housewares and home  accessories. As of September 28, 2002 the Company operated 380
stores in 45  states and in four provinces across Canada. The Companys stores
emphasize  a broad assortment of home textiles, housewares and home accessories, carrying
both national brand and private label goods.



Critical  Accounting Policies


The preparation of financial
statements in conformity with  accounting principles generally accepted in the United
States of America  requires management to make estimates and assumptions that affect the
reported  amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts and  timing
of revenues and ofexpenses during the reporting period. The  Companys
management believes the following critical accounting  policies involve significant
estimates and judgments inherent in the  preparation of the consolidated financial
statements.


Valuation of Inventory:
Inventories are valued using the  lower of cost or market value, determined by the retail
inventory  method (RIM). Under RIM, the valuation of inventories at cost  and
the resulting gross margins are calculated by applying a calculated  cost-to-retail ratio
to the retail value of inventories. RIM is an averaging  method that is used in the
retail industry due to its practicality.  Inherent in the RIM calculation are certain
significant management judgments and  estimates including, among others, merchandise
mark-on,  mark-up, markdowns and shrinkage based on historical experience  between the
dates of physical inventories, all of which significantly  impact the ending inventory
valuation at cost.


Sales Returns: The Company
estimates future sales returns  and, when material, records a provision in the period
that the related sales are  recorded based on historical information. Should actual
returns differ from the  Companys estimates, the Company may be required to revise
estimated sales returns.


Impairment of Assets: The Company
periodically evaluates  long-lived assets and goodwill for indicators of impairment. The
Companys  judgments regarding the existence of impairment indicators are based on
market  conditions and operational performance. Future events could cause the Company to
conclude that impairment indicators exist and that the value of long-lived  assets and
goodwill is impaired.


Store Closure Costs: The Company
records estimated store  closure costs, such as fixed asset write-offs, estimated lease
commitment costs  net of estimated sublease income, markdowns for inventory that will  be
sold below cost, and other miscellaneous store closing costs, in the period  in which
management determines to close a store. Such estimates may be subject  to change should
actual costs differ.



Self  Insurance:  The Company is
self insured for various  insurance  programs.  Self-insurance  liabilities  are based on
estimates of claims  incurred that are to be paid in the future.


Litigation: The Company records an
estimated liability related  to various claims and legal actions arising in the ordinary
course of business,  which is based on available information and advice from outside
counsel where  applicable. As additional information becomes available, the Company will
assess  the potential liability related to its pending claims and may adjust its
estimates accordingly.



11
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|Results of  Operations



Thirteen Weeks Ended  September
28, 2002 Compared with Thirteen Weeks Ended  September 29, 2001


Net sales for the thirteen weeks
ended September 28,  2002 increased 15.7% to $542.6 million, up from  $468.9 million for
the same period last year. The increase in net  sales is primarily the result of new
store openings since September  29, 2001.


During the thirteen weeks ended
September 28,  2002, the Company opened 14 stores and closed one store as  compared with
opening 25 stores and closing no  stores during the same period last year. At  September
28, 2002, the Company operated 380 stores, including  14 stores in Canada, as compared
with 329 stores,  including seven stores in Canada, at September 29, 2001. Store square
footage increased 15.4% to 13,259,000 at September  28, 2002 compared with 11,485,000 at
September 29,  2001.


Comparable store net sales
increased 1.8% for  the thirteen weeks ended September 28, 2002 compared with a decline
of 4.8% for the same period last year. The increase in comparable  store net sales for
the thirteen weeks ended September 28, 2002 is  primarily attributed to an increase in
customer traffic as well as an  increase in average transaction. The Company believes its
sales  results also reflect the steady progress being made on its strategic  operating
initiatives, which include improvements of in-stock inventory  positions, improvements in
the Companys textile business  and customer shopping experience. Sales also
benefited from consistently  good overall performance of the Companys functional
housewares  business and core textile business.


In addition to the cost of
inventory sold, the Company  includes its buying and distribution expenses in its cost of
sales. Buying  expenses include all direct and indirect costs to procure merchandise.
Distribution expenses include the cost of operating the Companys  distribution
centers and freight expense related to transporting merchandise.  Gross profit for the
thirteen weeks ended September 28, 2002 was  $222.7 million, or 41.0% of net sales,
compared with  $190.2 million, or 40.6% of net sales, for the same period  last year.
Gross profit was impacted by an improvement in markdown rate as a result of improved  control over the
Companys clearance event in the third quarter, as well as an improvement in initial mark-on as a  result of product
mix and the leveraging of the Companys buying  power.


The Companys selling,
general and administrative  (SG&A) expenses consist of store selling
expenses, occupancy  costs, advertising expenses and corporate office expenses. SG&A
expenses for  the thirteen weeks ended September 28, 2002 were $192.7  million, or 35.5%
of net sales, compared with $165.4  million, or 35.3% of net sales, for the same period
last year.  The increase as a percentage of net sales is attributable to a greater
investment in store payroll as a result of the Companys initiative to  improve
overall guest service levels as well as a slight de-leveraging of  occupancy costs,
partially offset by the leverage of advertising expenses and corporate office
expenses.


Operating profit for the thirteen
weeks ended  September 28, 2002 was $30.0 million, or 5.5%  of net sales, compared with
$24.8 million, or 5.3% of net sales, for  the same period last year.


Net interest expense for the
thirteen weeks ended  September 28, 2002 decreased to $414,000 from  $1.0 million during
the same period last year. The decrease in  net interest expense is mainly due to lower
average borrowings as well as lower  interest rates.


The Companys income tax
expense was $11.3  million for the thirteen weeks ended September 28, 2002, compared
with $9.1 million for the same period last year. The Companys  effective tax rate
was 38.2% for both the thirteen weeks ended September  28, 2002 and September 29, 2001.


As a result of the factors
described above, net income for  the thirteen weeks ended September 28, 2002 was $18.3
million, or $0.41 per share on a diluted basis, compared  with $14.7 million, or $0.36
per share on a diluted  basis for the same period last year.



Thirty-Nine Weeks Ended September
28, 2002 Compared With Thirty-Nine Weeks Ended September 29, 2001


Net sales increased 18.2% to
$1,461.4 million for the  thirty-nine weeks ended September 28, 2002, up from $1,235.9
million for the  same period last year, primarily as a result of new store openings since
September 29, 2001. During the thirty-nine weeks ended September 28, 2002, the  Company
opened 42 stores and closed five stores, compared with opening 48 stores  and closing two
stores during the same period last year.



Comparable store net sales for the
thirty-nine weeks ended  September 28, 2002 increased 2.6% as compared with a decrease of
3.5% for the  same period last year. The increase in comparable store net sales can be
primarily attributed to an increase in customer traffic. The Company  believes its sales
results also reflect the steady progress being  made on its strategic operating
initiatives, which include improvements of  in-stock inventory positions, improvements in
the Companys



12
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--------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|LINENS N THINGS, INC. AND
SUBSIDIARIES  MANAGEMENTS DISCUSSION AND ANALYSIS 
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, cont


textile business and customer
shopping  experience. Sales also benefited from consistently good performance of the
Companys functional housewares business.



Gross profit for the thirty-nine
weeks ended September 28, 2002  was $596.8 million, or 40.8% of net sales, compared with
$503.1 million, or  40.7% of net sales, for the same period last year. Gross profit was
impacted by  an improvement in initial mark-on as a result of product mix and the
leveraging  of the Companys buying power.


SG&A expenses for the
thirty-nine weeks ended September 28,  2002 were $548.0 million, or 37.5% of net sales,
compared with $461.5 million,  or 37.3% of net sales, for the same period last year. The
increase as a  percentage of net sales is attributable to a greater investment in store
payroll  as a result of the Companys initiative to improve overall guest service
levels as well as a slight de-leveraging of occupancy costs, partially offset by  the leverage of
advertising expenses and corporate office expenses.


The Company incurred a one-time
pre-tax litigation charge of  $4.0 million, or an after-tax charge of $0.06 per share, in
the second quarter  of fiscal 2001 in connection with the claims arising in a class
action lawsuit  in California regarding overtime pay, as well as a separate claim for
accrued  vacation pay on behalf of certain former employees. Payment of this settlement
was completed in early fiscal 2002.


Operating profit for the
thirty-nine weeks ended September 28,  2002 was $48.8 million, or 3.3% of net sales,
compared with $37.6 million, or  3.0% of net sales, for the same period last year.


The Company incurred net interest
expense of $1.8 million for  the thirty-nine weeks ended September 28, 2002, compared
with $2.8 million for  the same period in 2001. The decrease in net interest expense is
mainly due to  lower average borrowings as well as lower interest rates.



The Companys income tax
expense for the thirty-nine weeks  ended September 28, 2002 was $17.9 million compared
with $13.3 million for the  same period last year. The Companys effective tax rate
was 38.2% for  both the thirty-nine weeks ended September 28, 2002 and  September 29,
2001.


Net income for the thirty-nine
weeks ended September 28, 2002  was $29.0 million, or $0.68 per share on a diluted basis,
compared with $21.5  million, or $0.52 per share on a diluted basis, for the same period
last year,  which included the after-tax litigation charge of $0.06 per share.



Liquidity and  Capital Resources



The Companys capital
requirements are primarily for new  store expenditures, new store inventory purchases and
seasonal working capital.  These requirements have been funded through a combination of
internally  generated cash flows from operations, credit extended by suppliers and
short-term borrowings.


On June 21, 2002, the Company
amended and extended  its $150 million senior revolving credit facility agreement (the
Credit Agreement) with third party institutional lenders to  expire April 20,
2005. The Credit Agreement allows for up to $40 million in  borrowings from additional
lines of credit outside of the Credit  Agreement. As of September 28, 2002, the
additional lines of credit  include committed facilities of approximately $23 million
expiring on June 18,  2003. As of September 28, 2002, the Company was in compliance  with
the terms of the Credit Agreement. As of September  28, 2002, the Company had no
borrowings under the Credit  Agreement and $16.1 million in borrowings under the
additional  lines of credit at a weighted-average interest rate of 4.4%. The  Company
also had $27.6 million of letters of credit outstanding as of  September 28, 2002, which
were primarily used for merchandise  purchases. The Company is not obligated under any
formal or informal  compensating balance requirements. See Note 3 to Financial
Statements.


Net cash used in operating
activities for the  thirty-nine weeks ended September 28, 2002 was  $13.2 million
compared with $31.1 million for the same  period last year. The change was primarily
attributable to an  improvement in net income and the timing of vendor payments impacted
by a slight improvement in inventory turn. The increase in inventory resulted  from new
store additions since fiscal 2001. Also, the Company has made  additional investments in
inventory as a result of the Companys in-stock  initiative.



13
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---

|LINENS N THINGS, INC. AND
SUBSIDIARIES  MANAGEMENTS DISCUSSION AND ANALYSIS  OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, cont


Net cash used in investing
activities for the  thirty-nine weeks ended September 28, 2002 was  $65.8 million,
compared with $78.0 million for the same  period last year. The decrease in net cash used
in investing  activities was due primarily to capital expenditures related to six fewer
store openings through the fiscal third quarter as compared to last year and  fewer
planned store openings in fiscal fourth quarter 2002 versus the  same period last year.
The Company currently estimates annual  capital expenditures will be approximately $75
million to $80 million in  fiscal 2002, primarily for an estimated 50 new stores, store
remodels, the third  distribution center and system enhancements.


Net cash provided by financing
activities for the  thirty-nine weeks ended September 28, 2002 was  $86.2 million
compared with $79.2 million for the same  period last year. The increase was primarily
due to a common  stock offering of 3.3 million shares that raised a net $95.8 million.
The  proceeds were used to pay down borrowings under the Credit Agreement.


Management regularly reviews and
evaluates its liquidity  and capital needs. The Company experiences peak periods for its
cash needs  during the course of its fiscal year, with peak periods generally expected
during the second quarter and fourth quarter of the current fiscal year. As the  Companys
business continues to grow and its current store expansion plan  is implemented, such
peak periods may require increases in the amounts available  under its credit facility
from those currently existing and/or other debt or  equity funding. Management currently
believes that the Companys cash flows  from operations, credit extended by
suppliers, its existing credit  facilities and its uncommitted lines of credit will be
sufficient to  fund its currently expected capital expenditure, working capital and
non-acquisition business expansion requirements for at least the next 12 to 18  months.



Other Events  and Uncertainties


On September 30, 2002, the Pacific
Maritime Association, a group  representing West Coast port operators and international
shipping lines,  initiated a lockout at 29 West Coast ports of members of the
International  Longshore and Warehouse Union, effectively bringing port operations to a
halt.  On October 8, 2002, a federal court issued a restraining order effective until
October 16, 2002 ending the lockout. At that time the court imposed an 80-day  cooling
off period as required by the Taft Hartley Act. The Company directly  imports
approximately 15% of its merchandise. In addition, a significant portion  of the Companys
merchandise is purchased from domestic vendors who  manufacture products overseas. The
majority of the Companys seasonal  merchandise purchased for the holiday selling
season has already been received  into its stores and distribution centers, and from a
merchandise standpoint, the  Company believes it is prepared for the fourth quarter. The
Company does not  anticipate any significant disruption of its presently scheduled
overseas  shipments. As a result, at this time the Company has determined that the
lockout  of the West Coast ports is not expected to have a material adverse effect on its
results of operations for the fiscal 2002 fourth quarter. However, management  continues
to monitor this situation closely.



Inflation


The Company does not believe that
its operating results  have been materially affected by inflation during the preceding
three years.  There can be no assurance, however, that the Companys operating
results  will not be affected by inflation in the future.


Seasonality


The Companys business is
subject to substantial  seasonal variations. Historically, the Company has realized a
significant  portion of its net sales and net income for the year during the third and
fourth  quarters. The Companys quarterly results of operations may also fluctuate
significantly as a result of a variety of other factors, including the timing of  new
store openings. The Company believes this is the general pattern associated  with its
segment of the retail industry and expects this pattern will continue  in the future.
Consequently, comparisons between quarters are not necessarily  meaningful and the
results for any quarter are not necessarily indicative of  future results.


Forward-Looking Statements



The foregoing contains
forward-looking statements within the  meaning of The Private Securities Litigation
Reform Act of 1995. The statements  are made a number of times and may be identified by
such forward-looking  terminology as expect, believe, may, will, could,
intend, plan, target and terms or variations of such
terms. All of our information  and statements regarding our outlook for the future
constitutes forward-looking  statements. All our forward-looking statements are



14
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------------------

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|LINENS N THINGS, INC. AND
SUBSIDIARIES  MANAGEMENTS DISCUSSION AND ANALYSIS  OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, cont



based on our current expectations,
assumptions, estimates and  projections about our Company and involve certain significant
risks and  uncertainties, including levels of sales, store traffic, acceptance of product
offerings and fashions, the success of our new business concepts and seasonal  concepts,
the success of our new store openings, competitive pressures from  other home furnishings
retailers, the success of the Canadian expansion,  availability of suitable future store
locations, schedule of store expansion and  of planned closings, the impact of the
bankruptcies and consolidations in our  industry, the impact on consumer spending as a
result of a decrease in consumer  confidence, a slowing consumer economy and continued
decreases in the stock  market, a highly promotional retail environment, the impact of
the West Coast  ports labor dispute and the possibility of hostilities in the Middle
East.  Actual results may differ materially from such forward-looking statements. These
and other important risk factors are included in the Risk Factors section of
the Companys Registration Statement on Form S-3 as filed  with the Securities
and Exchange Commission on June 18, 2002, and may be  contained in subsequent reports
filed with the Securities and Exchange  Commission. You are urged to consider all such
factors. In light of the  uncertainty inherent in such forward-looking statements, you
should not consider  their inclusion to be a representation that such forward-looking
matters will be  achieved. The Company assumes no obligation for updating any such
forward-looking statements to reflect actual results, changes in assumptions or  changes
in other factors affecting such forward-looking statements.



15
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|LINENS N THINGS, INC. AND
SUBSIDIARIES  MANAGEMENTS DISCUSSION AND ANALYSIS  OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, cont


Item 3.  Quantitative and
Qualitative Disclosures About Market Risk


The Company continuously evaluates
the market risk  associated with its financial instruments. Market risks relating to the
Companys operations result primarily from changes in interest rates and  foreign
exchange rates. The Company does not engage in financial transactions  for trading or
speculative purposes.


Interest  Rate Risk:


The Companys financial
instruments include cash and cash  equivalents and short-term borrowings. The Companys
obligations are  short-term in nature and generally have less than a 30-day commitment.
The  Company is exposed to interest rate risks primarily through borrowings under the
Credit Agreement. Interest on all borrowings is based upon several alternative  rates,
including a fixed margin above LIBOR rate. The Company  believes that its interest rate
risk is minimal as a hypothetical 10% increase  or decrease in the associated debts
variable rate would not materially  affect the Companys results from operations or
cash flows. The Company  does not use derivative financial instruments in its investment
portfolio.


Foreign  Currency Risk:


The Company enters into some
purchase obligations outside  of the United States, which are predominately settled in
U.S. dollars and  therefore, the Company has only minimal exposure to foreign currency
exchange risks. The Company does not hedge against foreign currency risks and  believes
that foreign currency exchange risk is immaterial.


In addition, the Company operated
14 stores in  Canada as of September 28, 2002. The Company believes its foreign  currency
translation risk is minimal, as a hypothetical 10% strengthening or  weakening of the
U.S. dollar relative to the Canadian dollar would not  materially affect the Companys
results from operations or cash flow.


Since fiscal year end 2001, there
have been no material  changes in market risk exposures.



Item 4.  Controls and Procedures
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | Evaluation
of disclosure controls and procedures
|--- |  | ------------------------------------------------

| |  | The Companys
Chief Executive  Officer (CEO) and Chief Financial Officer (CFO)
have  evaluated the effectiveness of the design and operation of the Companys
disclosure controls and procedures (as defined in Exchange Act Rules 240.13a-14c  and
15d-14c) as of a date within ninety days before the filing of this quarterly  report.
Based on that evaluation, the Companys management, including the  CEO and CFO,
concluded that the Companys current disclosure controls and  procedures were
effective, providing them with material information relating to  the Company as required
to be disclosed in the reports the Company files or  submits under the Exchange Act on a
timely basis.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Changes
in internal controls
|--- |  | ----------------------------

| |  | There have
been no significant  changes in the Companys internal controls or in other factors
that the  Company believes could significantly affect those internal controls subsequent
to the evaluation date.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16
|--

---

|PART II  -  OTHER INFORMATION



Item 6.   Exhibits and Reports on
Form 8-K
|---------------------------------------------------------------------------

|(a) |  | EXHIBIT
INDEX
|--- |  | -------------

| |  | Exhibit Number |  | Description
| |  | -------------- |  | -----------

| |  | 15 |  | Letter
re unaudited interim financial information
| |  | -- |  | -------------------------------------------------

|(b) |  | Reports
on Form 8-K:
|--- |  | --------------------

| |  | The Company
filed a Current Report  on Form 8-K dated August 9, 2002, disclosing that Norman Axelrod,
Chairman and  Chief  Executive Officer of the Company and William T. Giles, Senior Vice
President, Chief  Financial Officer of the Company each submitted to the SEC a  sworn
statement pursuant to  SEC Order No. 4-460.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The Company
filed a Current Report  on Form 8-K dated August 12, 2002, disclosing that the Company
filed as  correspondence  the transmittal letter and the certifications required by
§906 of the  Sarbanes-Oxley Act of 2002.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The Company
filed a Current Report  on Form 8-K dated August 12, 2002, concerning an amendment to the
Companys  credit  agreement and assignments of interest between some of the lenders
party  to the credit  agreement.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SIGNATURE


Pursuant to the requirements of
the Securities Exchange Act of 1934, the Registrant has duly caused this report  to be
signed on its behalf by the undersigned thereunto duly authorized.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date:  November 12, 2002 |  | LINENS N THINGS, INC.(Registrant)By: 
William T. GilesSenior Vice President, Chief Financial Officer(Duly authorized officer andprincipal financial officer)
|------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17
|--

---

|CERTIFICATION


I, Norman Axelrod, Chairman and
Chief Executive Officer, certify that:
|--------------------------------------------------------------------------------------

|1. |  | I
have reviewed this quarterly  report on Form 10-Q of Linens n Things, Inc.;
|-- |  | ------------------------------------------------------------------------------

|2. |  | Based
on my knowledge, this  quarterly report does not contain any untrue statement of a
material fact or  omit to state a material fact necessary to make the statements made, in
light of  the circumstances under which such statements were made, not misleading with
respect to the period covered by this quarterly report;
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Based
on my knowledge, the  financial statements, and other financial information included in
this quarterly  report, fairly present in all material respects the financial condition,
results  of operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report;
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | The
registrants other  certifying officer and I are responsible for establishing and
maintaining  disclosure controls and procedures (as defined in Exchange Act Rules 13a-14
and  15d-14) for the registrant and we have:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a. |  | designed
such disclosure  controls and procedures to ensure that material information relating to
the  registrant, including its consolidated subsidiaries, is made known to us by  others
within those entities, particularly during the period in which this  quarterly report is
being prepared;
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. |  | evaluated
the effectiveness of the registrants  disclosure controls and procedures as of a date
within 90 days prior to the filing  date of this quarterly report (the "Evaluation
Date"); and
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c. |  | presented
in this quarterly report our conclusions about the  effectiveness of the disclosure
controls and procedures based on our  evaluation as of the Evaluation Date;
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | The
registrants other  certifying officer and I have disclosed, based on our most
recent evaluation, to  the registrants auditors and the audit committee of
registrants  board of directors:
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a. |  | all
significant  deficiencies in the design or operation of internal controls which could
adversely affect the registrant's ability  to record,  process,  summarize and report
financial  data and have  identified for the  registrants  auditors any  material
weaknesses in internal controls; and
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b. |  | any
fraud,  whether or not material,  that involves  management or other employees who have a
significant  role in the registrant's  internal controls; and
| |  | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | The
registrants other  certifying officer and I have indicated in this quarterly report
whether or not  there were significant changes in internal controls or in other factors
that  could significantly affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date:  November 12, 2002 |  | /s/ Norman Axelrod
Norman AxelrodChairman and Chief Executive Officer
|------------------------ |  | -----------------------------------------------------------------------------------

|18
|--

---

|CERTIFICATION


I, William T. Giles, Principal Financial Officer, certify that:
|-------------------------------------------------------------------------------

|1. |  | I
have reviewed this quarterly  report on Form 10-Q of Linens n Things, Inc.;
|-- |  | ------------------------------------------------------------------------------

|2. |  | Based
on my knowledge, this  quarterly report does not contain any untrue statement of a
material fact or  omit to state a material fact necessary to make the statements made, in
light of  the circumstances under which such statements were made, not misleading with
respect to the period covered by this quarterly report;
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Based
on my knowledge, the  financial statements, and other financial information included in
this quarterly  report, fairly present in all material respects the financial condition,
results  of operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report;
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | The
registrants other  certifying officer and I are responsible for establishing and
maintaining  disclosure controls and procedures (as defined in Exchange Act Rules 13a-14
and  15d-14) for the registrant and we have:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a. |  | designed
such disclosure  controls and procedures to ensure that material information relating to
the  registrant, including its consolidated subsidiaries, is made known to us by  others
within those entities, particularly during the period in which this  quarterly report is
being prepared;
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. |  | evaluated
the effectiveness of the registrant's  disclosure controls and procedures as of a date
within 90 days prior to the filing  date of this quarterly report (the "Evaluation
Date"); and
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c. |  | presented
in this quarterly report our conclusions about the  effectiveness of the disclosure
controls and procedures based on our  evaluation as of the Evaluation Date;
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | The
registrants other  certifying officer and I have disclosed, based on our most
recent evaluation, to  the registrants auditors and the audit committee of
registrants  board of directors:
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a. |  | all
significant  deficiencies in the design or operation of internal controls which could
adversely affect the registrant's ability  to record,  process,  summarize and report
financial  data and have  identified for the  registrants  auditors any  material
weaknesses in internal controls; and
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b. |  | any
fraud,  whether or not material,  that involves  management or other employees who have a
significant  role in the registrants  internal controls; and
| |  | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | The
registrants other  certifying officer and I have indicated in this quarterly report
whether or not  there were significant changes in internal controls or in other factors
that  could significantly affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date:  November 12, 2002 |  | /s/ William T. Giles
William T. GilesSenior Vice President, Chief Financial Officer
|------------------------ |  | -------------------------------------------------------------------------------------------------

|19
|--