Blog: Leonie BarrieTalbots in transition

Leonie Barrie | 13 March 2008

Hidden in Talbots’ fourth-quarter and full-year results statement yesterday was news that the company plans to close an additional 20 underperforming stores this year.

The latest scale-back comes just two months after Talbots said it would shut 66 Talbots Kids and 12 Talbots Mens stores this year – and is amid quarterly losses of $171m and an 8% slump in sales.

The retailer blames the “challenging economy” behind its reduction plan, and says it intends to cut its new store openings to 46 this year, down from 75 last year.

Talbots CEO Trudy F Sullivan calls 2008 a year of transition for the company – but most worrying for analysts are the costs associated with its disastrous acquisition of women’s clothing retailer J Jill Group.

It seems non cash write downs of $150m are attributable to J Jill, and that with its lower growth and earnings projections the chain is worth less today than it was when Talbots bought it for $517m in 2006. 

Talbots swings to $171m Q4 loss on charges


BLOG

Act now to keep receiving just-style newsletters

You may have noticed a red alert bar at the top of just-style’s weekly and daily newsletters asking you to “Act now to keep receiving the just-style newsletter.” ...

BLOG

Apparel imports into the US rose in June

Apparel imports into the US rose in June as merchants stocked up for summer and prepared for the back-to-school season, with imports from Vietnam continuing to surge....

BLOG

US retailers under pressure to grow sales as mall traffic slows

Under Armour is to close stores and cut jobs – around 2% of the company's global workforce – as part of new plans to build a stronger and smarter company with faster go-to-market speed and greater dig...

BLOG

Agile logistics key to new hybrid retail world

US retail giant Walmart has topped a list of the fastest growing retailers thanks to its investment in ensuring it has the right balance between its online and brick and mortar operations....

just-style homepage



Forgot your password?