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Talbots re-confirms full year outlook
09 May '08
4 min read
"At the J. Jill brand, sales were weak throughout the quarter. That said, we did see a stronger performance in our direct versus retail channel. We remain focused on strengthening our product offering and building brand awareness to drive improved performance and future growth in this business."
Ms. Sullivan concluded, "Overall, having completed the first quarter, we are pleased with the positive indicators we are seeing in our business performance, which validate certain key assumptions in our recently announced strategic plan. We are at the early stages of margin expansion in both our brands and believe we will gain traction in the quarters ahead.
In addition, we will further benefit from tight expense control as we continue to streamline our operations. We are on the right track to achieve our growth and profit objectives while ensuring the true heritage of our brands." Re-Confirms 2008 Full Year Outlook:
The Company's improved merchandise gross margin, which is tracking ahead of its target, offset the weakness in first quarter sales. Therefore, the Company re-confirms its previously announced outlook for fiscal 2008 earnings from continuing operations, excluding Talbots Kids, Mens and U.K. operating results and close down costs, to be in the range of $0.47 to $0.52 per diluted share.
The Company is planning for a loss from discontinued operations in the range of ($0.64) to ($0.59) per share, for a total loss per share in the range of ($0.17) to ($0.07), compared to the ($3.56) loss per share reported in fiscal 2007.
As previously stated, the Company expects that it will complete the closing of its Talbots Kids, Mens and U.K. businesses in the third quarter of 2008. At that time, the operating results and close down costs of these businesses will be reported as discontinued operations for the third quarter and all prior reporting periods.
The Talbots Inc is in discussions with financial institutions to increase its working capital line of credit and will provide an update on its progress when appropriate. The Company expects to be in compliance with all covenants of its acquisition term loan agreement for first quarter fiscal 2008.
Ms. Sullivan concluded, "Overall, having completed the first quarter, we are pleased with the positive indicators we are seeing in our business performance, which validate certain key assumptions in our recently announced strategic plan. We are at the early stages of margin expansion in both our brands and believe we will gain traction in the quarters ahead.
In addition, we will further benefit from tight expense control as we continue to streamline our operations. We are on the right track to achieve our growth and profit objectives while ensuring the true heritage of our brands."
The Company's improved merchandise gross margin, which is tracking ahead of its target, offset the weakness in first quarter sales. Therefore, the Company re-confirms its previously announced outlook for fiscal 2008 earnings from continuing operations, excluding Talbots Kids, Mens and U.K. operating results and close down costs, to be in the range of $0.47 to $0.52 per diluted share.
The Company is planning for a loss from discontinued operations in the range of ($0.64) to ($0.59) per share, for a total loss per share in the range of ($0.17) to ($0.07), compared to the ($3.56) loss per share reported in fiscal 2007.
As previously stated, the Company expects that it will complete the closing of its Talbots Kids, Mens and U.K. businesses in the third quarter of 2008. At that time, the operating results and close down costs of these businesses will be reported as discontinued operations for the third quarter and all prior reporting periods.
The Talbots Inc is in discussions with financial institutions to increase its working capital line of credit and will provide an update on its progress when appropriate. The Company expects to be in compliance with all covenants of its acquisition term loan agreement for first quarter fiscal 2008.
The Talbots Inc
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