(Direct Newsline) The Talbots, Inc. is planning for top-line growth of approximately 3%. Much of this growth will come from increases in direct marketing sales, which are seen as rising in the mid-single digit range. Despite the revenue growth, the Hingham, MA-based apparel marketer anticipates taking a loss for the year.
For the year ended Feb. 2, the company generated $2.29 billion in sales, compared with $2.23 billion for the year ended Feb. 3, 2007 (a 53-week year). Retail store sales amounted to $1.86 billion for the year, while direct marketing sales, which include catalog and Internet revenue, were $428 million.
As part of its overall refocus, The Talbots will rely more heavily on direct marketing, and anticipates increasing prospecting and frequency of direct mail for both its flagship and J. Jill brands. The company also plans to redesign its Web sites, and will align its retail and direct calendars to synch up its messaging through all of its sales channels.
Additionally, within its retail operations, the company will add approximately 35 retail outlets to its Talbots Womans stores during the next five years, will exercise tighter inventory control over its accessories and shoes operations, and draw clearer definitions between its core offerings and its Talbots Collection wares.
It will also offer a more aggressive promotions effort in support of Talbots Collection. It will also beef up its outlet operations, and will manage its J. Jill stores more aggressively than it had been, and will limit establishing any further locations until performance in existing ones improve.