Talbots Inc. posted a 69 percent decline in first-quarter earnings, hurt by its kids’, men’s and U.K. noncore businesses, as well as restructuring costs.
For the three months ended May 3, earnings fell to $1.6 million, or 3 cents a diluted share, from $5.2 million, or 10 cents in the year-ago period.
Excluding a loss of $5.9 million, or about 11 cents a share, related to Talbots’ kids’, men’s and U.K noncore assets, which are closing, and about $3.5 million, or 7 cents a share, in restructuring costs, net income from ongoing core operations was $11 million, or 21 cents a share.
Sales for the quarter declined 5.4 percent to $542.4 million from $573.6 million, while total same-store sales dropped 9.8 percent. By brand, comps at Talbots and J.Jill fell 7.4 and 20.2 percent, respectively.
The specialty retailer reaffirmed its full-year guidance, expecting a loss in the range of 7 cents to 17 cents a diluted share.
For complete coverage, see Thursday’s issue of WWD.