NEW YORK - Despite robust sales, The Talbots Inc.'s third-quarter earnings were weighted by acquisition costs connected to its purchase of the J. Jill specialty chain in May.
For the three months ended Oct. 28, net income fell 59.7 percent to $8 million, or 15 cents a diluted share, from $20 million, or 37 cents, in the same year-ago quarter. The results were in line with Wall Street’s consensus expectations of 15 cents a share. Excluding acquisition-related costs and stock option expense, earnings per diluted share would have been 35 cents for the combined company compared with 37 cents posted last year just for the Talbots brand.
Total sales for the combined company rose 33.4 percent to $568.6 million from $426.3 million. By brand, retail sales for Talbots rose by 5.5 percent to $383 million from $363 million and were $77 million for J. Jill. Sales for the J. Jill brand represent 20 percent of the total combined company’s volume. Same-store sales rose 2.3 percent, with same-store sales at Talbots rising 4 percent and declining 6.6 percent for J. Jill.
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A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"