The Talbots, Inc. reported a first quarter net loss of $18.8 million, compared to net income of $18.5 million one year ago. The company also said that it plans to continue streamlining operations and plans further reductions in headcount.
Sales for the 13 weeks ended May 2, 2009 were $306.2 million compared to $414.8 million last year. Comparable store sales declined 26.9% for the period. The company warned that it also expects a loss in the second quarter.
Direct marketing, including catalog and Internet sales, also took a hit dropping to $49.8 million for the first quarter, compared to $69.7 million last year.
The company is planning more corporate job cuts across all locations, about 20% of staff, in an effort to save about $21 million. The company has now identified $125 million of annualized cost reductions, an increase over the $100 million announced in April, Talbots said.
The company also said that sales remain difficult and that it continues to
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