Talbots Takes A Third-Quarter Loss
The Talbots, Inc., reported a third-quarter net loss of $9.4 million, compared with net income of $8.1 million a year earlier. During the same period, the company’s net sales slipped from $568.6 million to $556 million. The quarter ended Nov. 3.
The loss came about as diminished sales were combined with higher cost of sales, buying and occupancy expenses, as well as increased sales, general and administrative costs.
Much of the sales drop came from the Hingham, MA-based chain’s retail outlets. Retail sales fell from $383 million to $366, while direct marketing revenue, which includes catalog and Internet sales, was $109 million, essentially even with last year.
During the fourth quarter, Talbots is implementing a new promotional markdown strategy for its flagship brand, as well as increasing the frequency of customer contacts and offerings, president and CEO Trudy F. Sullivan said in a statement.
