The Talbots Inc announced a revised outlook for fall season earnings per share, due to weaker than anticipated quarter-to-date sales results primarily for the Talbots brand, combined with an increasingly conservative consumer spending mindset and industry outlook for holiday, in light of an uncertain economic environment.
The Company currently anticipates that its consolidated fall season comparable store sales will be negative mid to high single digits, compared to its previous plan announced in August of approximately flat with the prior year period.
Total company sales for the fall season will be approximately $65 to $75 million below its prior August plan, and now expects a fall season loss for the six-month period ending February 2, 2008 to be in the range of ($0.25) to ($0.35) per share, which includes approximately $0.16 of one-time expense related to executive compensation and professional consulting fees.
This compares to the Company's previous outlook for fall season earnings per share of $0.42 to $0.48, which included a one-time compensation expense of $0.08 to $0.10 per share.
Trudy F. Sullivan, Talbots President and Chief Executive Officer, commented, "We are very disappointed in our quarter-to-date performance. Our results have been significantly impacted by weaker than expected Talbots brand store sales, particularly during the important mid-season sale, which started in late September."
"For the J. Jill brand, tough comp trends earlier in the period began to level off as we progressed through the quarter. Regardless of this recent improvement, J. Jill will not be accretive this fiscal year."
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