The Talbots Inc., generated third-quarter sales of $357 million, down from $414 million during third-quarter 2007. The company recorded an $18.3 million loss, compared with just under $7 million in income a year ago. The quarter ended Nov. 1.
“Our third quarter results reflect the impact of the deteriorating macro-economic conditions that started in mid-September,” said president and CEO Trudy F. Sullivan in a statement.
Sullivan continued, “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.”
During the quarter, retail sales dropped from $345 million a year ago to $303 million. Direct marketing sales, including catalog and internet, fell from $69 million to $54 million, primarily due to changes in catalog circulation strategy. In 2008, Talbots shifted the mailing of its key holiday/gift catalog into November this year versus October last year. The move is expected to benefit fourth quarter direct sales.
The company also decided to sell its J. Jill brand during the quarter, and completed its closing of its Talbots Kids, Mens and UK operations.
Talbots also converted existing uncommitted lines of credit from Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp. to existing lines of credit. The two lines of credit are valued at $75 million and $50 million, respectively.
