Talbots Inc. Earnings Cheat Sheet: Retailer Closing 20% of Stores

Talbots Inc. (NYSE:TLB) reported earnings for the first quarter. The Company together with its wholly owned subsidiaries is a retailer and direct marketer of women’s apparel, shoes, and accessories.

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Results: The company swung to a profit of $739,000 (one cent per share) vs. a loss of $4.4 million or a loss of 8 cents per share in the year earlier quarter.

Revenue: Revenue fell 6% to $301.3 million.

Actual vs. Wall St. Expectations: TLB reported adjusted net income of 8 cents per share. By that measure, the company beat the mean analyst estimate of 3 cents/share. Estimates ranged from a loss of 5 cents per share to a profit of 10 cents per share.

Quoting Management: Trudy F. Sullivan, Talbots President and Chief Executive Officer, commented, “Our first quarter performance reflects an inconsistent customer response to our merchandise assortments, a challenging competitive environment and high levels of promotional activity. Although we did see a positive customer reaction to our March brand moment, our February and April brand moments underperformed and sales in each month of the quarter decreased year over year. We have been vigorously addressing our challenges, while continuing with the implementation of our key long-term initiatives. Our focus has been on directing our merchandise strategies to deliver a stronger balance of classic versus fashion forward styles in our assortments and implementing broader based marketing initiatives that better connect with our core and target customers to drive top-line growth.”

Competitors to Watch: Coldwater Creek Inc. (NASDAQ:CWTR), Christopher & Banks Corp. (NYSE:CBK), New York & Company, Inc. (NYSE:NWY), Ann Inc (NYSE:ANN), Ascena Retail Group Inc (NASDAQ:ASNA), Charming Shoppes, Inc. (NASDAQ:CHRS), Limited Brands, Inc. (NYSE:LTD), Chico’s FAS, Inc. (NYSE:CHS), The Cato Corporation (NYSE:CATO), J.C. Penney (NYSE:JCP), Nordstrom (NYSE:JWN), and Destination Maternity Corp. (NASDAQ:DEST).

Stock Performance: Shares of TLB are down over 7% from the previous close.

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(Sources: YahooFinance, Xignite Financials)