Home / Knowledge / News / Fashion / Talbots to exclusively focus on its core brand business
Talbots to exclusively focus on its core brand business
26
Nov '08
The Talbots Inc announced results for the third quarter ended November 1, 2008. In addition, the Company announced it has secured agreements from Mizuho Corporate Bank, Ltd and Sumitomo Mitsui Banking Corporation to convert their existing uncommitted working capital lines to committed working capital lines.

Third quarter net loss from continuing operations was $14.8 million or $0.28 per diluted share compared to last year's net loss of $0.9 million or $0.02 per share on a comparable basis. The Company results from continuing operations include its core Talbots Misses, Petites, Womans, Collection, and Accessories & Shoes concepts.

Trudy F. Sullivan, President and Chief Executive Officer of The Talbots Inc., commented, “Our third quarter results reflect the impact of the deteriorating macro-economic conditions that started in mid-September. While we have had positive customer response to our reinvigorated Talbots brand merchandise and marketing efforts, this was not enough to offset a steep decline in consumer traffic and spending that we and most others across our entire industry have experienced.

“In the near-term, we continue to tightly control our inventory and significantly cutback discretionary spending, both of which drive further improvements in working capital as we focus on enhancing our cash flow to best manage the business.”

The Company has also announced that with the help of Aeon, its majority shareholder, it has been in negotiations to convert its uncommitted working capital lines to committed working capital lines. After a review of Talbots strategic plan, including the decision to sell the J. Jill brand, Mizuho Corporate Bank, Ltd and Sumitomo Mitsui Banking Corporation have agreed to convert their existing uncommitted $75 million and $50 million working capital lines of credit facility to committed lines, respectively, subject to the completion of due diligence and applicable loan documentation. Similar discussions are currently underway with the other lender banks, who have indicated their support of this direction.

Ms. Sullivan commented, “This is a great step forward for Talbots as it serves to stabilize our liquidity during these most difficult and uncertain times, enabling us to focus on implementing the key strategic initiatives that will drive improved performance of our business.”

Continued emphasis on inventory management results in total inventory down 23% at end of third quarter.

Improved merchandise operating gross margin of approximately 100 basis points over last year.

Completed the closing of non-core Talbots Kids/Mens/U.K. businesses.

Gained positive momentum with each new monthly merchandise delivery throughout the quarter as measured by improving sell through performance. This trend continues into November, particularly with regards to the gift giving assortment.

Positive consumer response to innovative marketing initiatives during the quarter resulted in healthy reactivation of lapsed customers.


Must ReadView All

Courtesy: Mario Crosta

Textiles | On 23rd Oct 2018

'Global textile machinery market may grow at 14% by 2020'

Analysts have predicted that the global textile machinery market may...

Cotton production and exports in West Africa. Courtesy: FAS/USDA

Textiles | On 23rd Oct 2018

Record cotton production to drive West Africa exports

Cotton exports from West Africa for 2018-19 are projected to surpass...

Courtesy: Prudence Earl on Unsplash

Textiles | On 23rd Oct 2018

Sri Lanka's textile exports up 4.7% in Jan-July '18

Sri Lanka’s earnings from textiles and garments exports increased by...

Interviews View All

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Varinder Singh Jawanda, Trendy Bharat

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Nitesh Mittal,

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Pratik Agarwal,

Pratik Agarwal

Breya is a brand of Indo-Western clothes for women owned by ABP Apparels...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search