US: Talbots Q3 loss widens, gets committed credit lines
Women's wear retailer The Talbots Inc has widened its third quarter loss after closing its non-core Talbots Kids, Mens and UK businesses and being hit by a steep decline in consumer traffic and spending.
The Hingham, Massachusetts based company, which earlier this month took the decision to sell its J Jill brand, also said Mizuho Corporate Bank Ltd and Sumitomo Mitsui Banking Corp have agreed to convert $125m to committed working capital lines.
"This is a great step forward for Talbots as it serves to stabilise our liquidity during these most difficult and uncertain times, enabling us to focus on implementing the key strategic initiatives that will drive improved performance of our business," said chief executive Trudy Sullivan.
For the three months to 1 November, net loss from the core Talbots Misses, Petites, Womans, Collection, and Accessories & Shoes concepts was $14.8m or $0.28 per diluted share, compared to last year's net loss of $0.9m or $0.02 per share.
Sales from continuing operations dropped 13.8% to $357m from $414m a year earlier.
Retail store sales fell 12.2% to $303m from $345m last year, and direct marketing sales (including catalogue and Internet) were down 21.7% to $54m after the key holiday/gift catalogue was mailed a month later than last year.
Comparable store sales declined 13.9% for the 13-week period.
The company, which is majority owned by Japanese retailer Aeon and operates 595 Talbots locations and 283 J Jill stores, said it is also in talks with other lenders to set up committed working capital lines.
But it has decided not to comment on its outlook for fourth quarter and full year amid the current "difficult and volatile" environment.
The Black Friday shopping bonanza sets a precedent for holiday season sales in the US. But rarely has it been more important to fashion retailers as many try to manoeuvre their way out of the red afte...
This year, thousands of retail outlets across the US will shut their doors as companies rationalise their store portfolios in the teeth of the worst recession since the Second World War. But is this a...
Apparel and footwear maker Kenneth Cole Productions has hired Ingo Wilts to the new post of creative director, joining the company at the beginning of August....
Footwear, apparel and accessories maker Kenneth Cole Productions has swung to a first quarter loss after being hit by lower consumer spending and inventory cutbacks at major wholesalers....
Women's wear retailer The Talbots has named John Kovac as its new senior vice president, chief information officer....
Here is a roundup of the top five most-read stories on just-style this week. Click on each headline for the full story....
A slowdown in consumer spending, coupled with losses at its US clothing unit Talbots Inc, have pushed Japanese retailer Aeon Co to a full-year loss....
Retailer The Talbots is nearing a global sourcing deal with Li & Fung and has secured extra funding from its parent company as its fourth quarter losses spiralled to US$136.3m....
- Why do modern robotics elude sportswear makers?
- Traditional financing is a misfit for fast fashion
- Trump trade policy – Who knows what he'll do?
- Planning is key to an effective inventory strategy
- How would end of NAFTA affect US apparel industry?
- US Q3 in brief - G-III Apparel, Express
- Bagir exports first trousers for H&M from Ethiopia
- Film documents Cambodia garment workers' stories
- Esquel efficiency drive continues to boost brands
- Pakistan suspends India cotton imports
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016
- Footwear Top 5 Emerging Markets Industry Guide_2016
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack