The Talbots Inc. increased both its direct and retail sales during the second quarter, and is planning to move forward with an expanded national advertising campaign next month.
The Hingham, MA-based retailer reported quarterly retail store sales of $339.4 million, a 5% increase over the same period last year. Catalog sales jumped by 6% to $50.2 million.
Net income totaled $18 million during the quarter, compared with $20 million last year. Earnings per share of 32 cents were higher than previous estimates, but lower than the 33 cents reported last year.
The Talbots will conduct a major fall campaign, including print advertising, direct mail, television and in-store events.
The fall TV spots, which usually run into September, will be extended into October this year thanks to a “smart media buy,” said spokesperson Margery B. Myers.
In addition, the print ads will include single-page ads followed by a spread.
Myers was unable to break out spending for the fall campaign, but said that the firm has a total ad budget of $62 million for the year. That includes spending on catalogs.
The apparel retailer will mail a total of 48 million catalogs in 2003, compared with 50 million last year.
Meanwhile, the firm posted net sales of $784.6 million for the first six months, compared with $761.7 million during the same period last year. Catalog sales fell by 1% to $116 million.
Net income fell to $47.9 million during the first half, compared with $55 million last year.
CEO Arnold B. Zetcher said in a statement that the second-quarter earnings were share were driven by “very strong regular price selling of our transitional and early fall merchandise, which began in mid-June and continued throughout the period. In addition, we experienced solid markdown sales throughout our semi-annual clearance sale event, which began at the end of June.”
The quarter ended on Aug. 2.
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