Soft Demand Takes Toll on Talbots
The Talbots Inc. took a $12.2 million loss during its second quarter, compared with $542,000 in net income during second quarter 2006. This was despite sales growth being flat — $572.3 million during the quarter just ended, compared with $571.4 million a year ago. The quarter ended Aug. 4.
Direct marketing sales were $100 million during quarter, compared with $95 million in second quarter 2006.
The sales decline “reflected in part a weak consumer response to our spring and summer assortments at both brands [Talbots and J. Jill],” Arnold B. Zetcher, the company’s chairman, said in a statement.
Zetcher continued, “Although we experienced a modest increase in transactions during the quarter, the increase was more than offset by a decline in average transaction value.”
