For the fourth quarter they see flat sales and a 45 percent decline in profit.

Over all, the unit's sales, flat for three years, jumped by 34 percent so far this year to $11.2 billion.

One notably weak category was computer hardware, which had flat sales in that period.

The result has been flat sales and depressed profits.

Retailers expect flat sales or modest increases through the first six months of 1990.

The company said that a price increase last April, coupled with lower interest rates, helped offset flat sales.

Over the last several years, the company has faced growing competition, flat sales, heavy debt and management turmoil.

The company projects flat sales for this quarter and a single-digit increase next year.

In May, the company forecast flat sales for the fiscal year.

But why, after decades of flat sales at best, have cigars become a fad?