The Talbots Inc. swung to a profit for the second quarter, but sales missed expectations.
Net profits tallied $941,000, or 1 cent a share, and compared with losses of $24.5 million, or 45 cents, a year earlier. Sales for the three months ended July 31 slipped 1.3 percent to $300.7 million from $304.6 million.
Adjusted income from continuing operations came in at 14 cents a share and was 9 cents better than analysts predicted. However, sales were below the expected $316.8 million.
“Our top-line sales performance reflects our decision to remain on plan with respect to our promotional event calendar within what proved to be an aggressively promotional environment,” said Trudy F. Sullivan, president and chief executive officer. “Nevertheless, we are pleased to have continued to see double-digit increases in our full-priced selling, which is in line with our focus on improving margins through strong inventory management and which we believe demonstrates that our merchandise is resonating with customers.”
Talbots reduced its top-line outlook for the full year and said sales would increase by a percentage in the low-single digits, instead of the 3 to 5 percent gain it previously projected.
For complete coverage, see Thursday’s issue of WWD.