• SG&A expense as a percent of net sales decreased 250 basis points to 33.7%, reflecting a $2.7 million or 2.4% decline in SG&A expenses over the prior year, even with the reinstatement of operational performance-based and certain other compensation programs contributing $10.5 million in additional first quarter expense. • Total inventory decreased 17.9% to $156.7 million, compared to $190.7 million at the end of the first quarter of 2009. • Total outstanding debt was $94.1 million, a decrease of $420.6 million compared to $514.7 million last year, primarily due to the comprehensive financing transactions completed on April 7, 2010. • Cash used in operations of $44.4 million, compared to $13.8 million last year, reflects the payment of $23.8 million in merger-related costs and year-over-year changes in working capital, partially offset by increased operating income.
Outlook For the full year 2010, the Company updated its previously announced guidance. The Company continues to anticipate top-line sales increase in the range of approximately 3% to 5% compared to the prior year period. Full year adjusted earnings per share from continuing operations are anticipated to be in the range of approximately $0.75 to $0.83 per share, excluding merger-related costs, restructuring and impairment. This compares to an adjusted loss per share from continuing operations of $0.10 reported last year.
For the second quarter 2010, the Company anticipates top line sales increase of approximately low single digits. Adjusted earnings per share from continuing operations are anticipated to be in the range of approximately $0.00 to $0.05 per share, excluding merger-related costs, restructuring and impairment compared to last year's adjusted loss per share from continuing operations of $0.33.
The Talbots, Inc. is a leading specialty retailer and direct marketer of women's apparel, shoes and accessories. At the end of the first quarter 2010, the Company operated 579 Talbots brand stores in 46 states, the District of Columbia, and Canada.
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