Talbots plans to expand its store re-image program
The Talbots Inc reported results for the fourth quarter and fiscal year ended January 29, 2011.
Fourth quarter loss from continuing operations was $2.8 million, or $0.04 per share, compared to last year's loss from continuing operations of $1.5 million, or $0.03 per share. Adjusted fourth quarter loss from continuing operations was $9.6 million, or $0.14 per share, excluding net income from special items of $6.8 million, or $0.10 per share, compared to last year's adjusted income from continuing operations of $7.4 million, or $0.13 per share.
Fiscal year 2010 income from continuing operations was $7.6 million, or $0.11 per share, compared to last year's loss from continuing operations of $25.3 million, or $0.47 per share. Adjusted full year 2010 income from continuing operations was $40.6 million, or $0.61 per share, excluding special items of $33.0 million, or $0.50 per share, compared to last year's adjusted loss from continuing operations of $5.5 million, or a loss of $0.10 per share.
A full reconciliation of GAAP to non-GAAP ("adjusted") items is included with this release.
Trudy F. Sullivan, Talbots President and Chief Executive Officer, said, "We achieved fourth quarter and full year results that were slightly better than our revised expectations. For the full year, we significantly improved our profitability and considerably deleveraged our balance sheet; however, we remain disappointed in our fourth quarter performance.
“As we previously reported, our results during the fourth quarter reflected weaker than anticipated customer response to our product, high levels of competitive promotional activity and weather related issues. We believe merchandise styling in our catalog that was pushed too far forward for our core customer, and the initial allocation of product in the early implementation of our store segmentation strategy, were additional factors impacting store traffic. We have already begun to take steps to address these challenges."
Ms. Sullivan concluded, "At this stage in our turnaround, we are continuing to put building blocks in place that we believe will position the Company for long term sustainable, profitable growth. As we move forward in 2011, we believe that higher commodity costs and our increased promotional activity will affect our near-term profitability. We remain keenly focused on merchandise initiatives as well as branding and marketing strategies that we believe will drive increased customer traffic and sales.
"Further, we are pleased to expand the store re-image program this year to additional stores and believe the accelerated rationalization of our store portfolio and implementation of IT initiatives will also allow us to make progress toward improved productivity."
Click here for more details
The Talbots Inc