US retailer The Talbots has reported a net profit of US$941,000, compared to a loss last year, on the back of stronger margins.
“Our second quarter and year-to-date results demonstrate the steady progress we are making as a result of our strategic initiatives,” said Trudy F Sullivan, Talbots president and chief executive officer. In the second quarter, we again generated significant gross margin expansion, successfully managed expenses and achieved better than expected improvement in adjusted earnings per share.”
“Our top-line sales performance reflects our decision to remain on plan with respect to our promotional event calendar within what proved to be an aggressively promotional environment. Nevertheless, we are pleased to have continued to see double-digit increases in our full-priced selling, which is in line with our focus on improving margins through strong inventory management and which we believe demonstrates that our merchandise is resonating with customers.
“Overall, we are pleased with our team’s continued sound execution, which enabled us to maintain the momentum that began in the third quarter of last year when we returned to profitability.”
Click here to view the company’s full second quarter results.