Talbots major stakeholder takes 62% Q1 profit hit

Tokyo Aeon Co., a majority owner of Talbots, posted a 62% drop in operating profit for the first quarter ended in May. The Japanese retailer said Tuesday that profits fell to 8.72 billion yen ($91.5 million), citing a slide in consumer spending that hit its supermarkets in Japan, as well as Talbots in the United States.

Aeon, Japan’s second-largest retailer, operates the 600-store Jusco supermarket chain, along with 1,200 grocery stores.

The company reported that same-store sales at Jusco fell 5.8% for the quarter, impacted by a drop in higher-margin clothing sales.

Talbot’s posted a loss for the quarter, and announced more job cuts and the sale of its J.Jill division.

For the full year, the company maintained its operating profit forecast of 130 billion yen to 140 billion yen, above what analysts estimated.