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Talbots plans to close Kids & Mens concepts
04 Jan '08
3 min read
The Talbots Inc will close approximately 78 stores throughout the U.S. as a result of this decision, including 66 Talbots Kids and 12 Talbots Mens stores. The closures will impact approximately 800 full- and part-time positions, or approximately 5% of The Talbots Inc. total workforce. The Company is considering ways to offer the affected associates other opportunities, where feasible.
As a result of these actions, the Company currently anticipates total revenue to be impacted by approximately $100 million on an annualized basis. The Talbots, Inc. currently expects that the ongoing operational benefit resulting from these closings would be approximately $13 to $15 million, or $0.15 to $0.18 per diluted share, on an annualized basis.
The Talbots, Inc. anticipates pre-tax expenses associated with the closings of approximately $5 million, or $0.06 per diluted share in the fourth quarter 2007. Virtually all of this charge is related to the non-cash impairment of store level assets. In addition, the Company expects to incur pre-tax expenses of approximately $34 to $42 million, or $0.40 to $0.49 per diluted share in fiscal 2008. The majority of this charge is attributable to lease liabilities and non-cash impairment of store level assets.
Fourth Quarter Update:
Separately, The Talbots Inc also announced that its quarter-to-date sales for both its Talbots and J. Jill brands are trending below its expectations. With the important month of January still ahead, the Company will provide further information regarding its outlook for fourth quarter earnings per share when it reports its fourth quarter sales results on February 7, 2008.
The Company continues to evaluate store growth, productivity and distribution channels as part of its strategic business review and will provide additional information regarding its 2008 operating plan on March 12, 2008, when it reports fourth quarter and full year fiscal 2007 operating results.
As a result of these actions, the Company currently anticipates total revenue to be impacted by approximately $100 million on an annualized basis. The Talbots, Inc. currently expects that the ongoing operational benefit resulting from these closings would be approximately $13 to $15 million, or $0.15 to $0.18 per diluted share, on an annualized basis.
The Talbots, Inc. anticipates pre-tax expenses associated with the closings of approximately $5 million, or $0.06 per diluted share in the fourth quarter 2007. Virtually all of this charge is related to the non-cash impairment of store level assets. In addition, the Company expects to incur pre-tax expenses of approximately $34 to $42 million, or $0.40 to $0.49 per diluted share in fiscal 2008. The majority of this charge is attributable to lease liabilities and non-cash impairment of store level assets.
Fourth Quarter Update:
Separately, The Talbots Inc also announced that its quarter-to-date sales for both its Talbots and J. Jill brands are trending below its expectations. With the important month of January still ahead, the Company will provide further information regarding its outlook for fourth quarter earnings per share when it reports its fourth quarter sales results on February 7, 2008.
The Company continues to evaluate store growth, productivity and distribution channels as part of its strategic business review and will provide additional information regarding its 2008 operating plan on March 12, 2008, when it reports fourth quarter and full year fiscal 2007 operating results.
The Talbots Inc
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