Home / Knowledge / News / Apparel/Garments / Talbots profitable third quarter exceeds expectations
Talbots profitable third quarter exceeds expectations
09
Dec '09
The Talbots, Inc reported adjusted third quarter net income from continuing operations, which ended October 31, 2009, of $17.2 million or $0.31 per diluted share, excluding restructuring and impairment charges, compared to last year's net loss of $12.4 million or $0.23 per share on a comparable basis.

Trudy F. Sullivan, Talbots President and Chief Executive Officer, commented, “Our third quarter results demonstrate tremendous operational discipline and solid execution of our strategic initiatives to drive improved performance of the business and restore profitability. The efforts over the past several quarters – particularly in the areas of strengthening our merchandise offering and tightly managing inventory and expense – have created a much stronger, leaner and profitable organization.”

Ms. Sullivan concluded, “We remain focused on executing our strategic plan to drive long-term sustainable growth and profitability of the business. As we move further into the holiday season, we are encouraged by the positive customer response to our merchandise assortment, evidenced by the continuation of improved full-price selling trends. Looking forward, we believe the steps we have and continue to take will help further solidify our operational results and deliver increased shareholder value.”

Third Quarter Highlights:

• Adjusted net income from continuing operations increased to $17.2 million, a $30 million improvement over the same period last year. Adjusted earnings per share from continuing operations of $0.31, well ahead of Company's previously announced guidance;
• Adjusted operating profit of $24.1 million, excluding restructuring and impairment, reflects an approximately $39 million increase over the same period last year. On a reported (GAAP) basis operating profit of $22.4 million, including restructuring and impairment, increased approximately $41 million over the same period last year;
• Total sales decreased 13.5%, slightly better than Company expectations. As anticipated, total sales were negatively impacted by significantly lower levels of markdown merchandise, resulting in an approximate 38% decline in markdown sales versus prior year;
• Full-price sales declined approximately 2% in the quarter, with strong sequential monthly improvement during the quarter. October full-price sales increased 10% versus prior year;
• Direct sales were essentially even with last year, driven by strength of two key catalogs – September and October, both of which outperformed prior year;
• Pure merchandise margin increased 980 basis points over prior year, due to strong IMU and improved full-price selling;
• SG&A expenses decreased 350 basis points, reflecting a $28 million or 22% decline in expenses over prior year;
• Total cost savings through third quarter are approximately $94 million. By the end of 2009, the Company anticipates it will be close to achieving its 2010 goal of $150 million in annualized cost savings;


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search