Talbots 2Q loss widens

HINGHAM, Mass. Talbots reported a second-quarter net loss of $17.6 million or 33 cents per share, excluding restructuring and impairment charges, compared to last year’s net loss of $9.4 million or 17 cents per share on a comparable basis.

Total sales from continuing operations for the second quarter were in line with the company’s expectations and were $304.6 million compared with last year’s sales of $395.2 million. Retail store sales for the thirteen weeks were $254.8 million compared to $334.3 million last year. Comparable-store sales declined 24.9% for the thirteen-week period.

Trudy Sullivan, Talbots president and CEO, commented, “It is important to note that we are beginning to see greater benefit from the strategic initiatives we put in place. We ended the second quarter with a substantial reduction in operating expenses and a solid increase in merchandise margin, all of which contributed to a significantly better-than-expected bottom line performance. We are especially pleased with our inventory position as we enter the third quarter.”

The company currently expects to report a loss from continuing operations in the third quarter in the range of approximately 24 cents to 30 cents per share, excluding restructuring and impairment charges.