Significant increase in Q4 operating income at Talbots

13 Apr '10

4 min read

On April 7, 2010, the Company announced the successful closing and completion of the BPW acquisition and the related transactions to delever its balance sheet and position it for future growth, including: (i) the repurchase of approximately 29.9 million shares held by Talbots former majority stockholder, Aeon (U.S.A.), Inc.; (ii) the repayment of all outstanding debt to Aeon totaling approximately $486.5 million plus accrued interest and other costs; and (iii) a new up to $200 million senior secured revolving credit facility arranged by GE Capital Markets and agented by GE Capital, Corporate Retail Finance.

Outlook

For the full year 2010, the Company anticipates a top-line sales increase in the range of approximately 3% to 5% compared to the prior year period. Adjusted operating income, excluding restructuring, impairment and merger costs, is anticipated to be in the range of approximately 5% to 6% of sales. These anticipated results compared to fiscal 2009 sales of $1,235.6 million and adjusted operating income of $11.2 million, or 0.9% of sales.

For the first quarter 2010, the Company anticipates a top line sales increase in the range of 4% to 5% compared to the prior year period. Adjusted operating income, excluding restructuring, impairment and merger costs, is anticipated to be in the range of approximately 4.5% to 6% of sales. These anticipated results compare to first quarter fiscal 2009 sales of $306.2 million and an adjusted operating loss of $15.8 million, or (5.2%) of sales.

The Talbots Inc

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