Talbots 3Q Loss Widens
Hingham, Mass. Talbots Inc. said Tuesday its third-quarter loss widened on the closing of some units, along with softer traffic and consumer spending.
For the period ended Nov. 1, Talbots reported a loss of $167.2 million compared with a loss of $9.4 million, or 18? per share, a year earlier.
Excluding $152.4 million related to the closing of Talbots Kids, Men's and U.K. businesses and the decision to sell J. Jill, the company posted a loss of $14.8 million compared with a loss of $893,000.
Quarterly sales dropped to $357.3 million, down 14% from $414 million in the previous year. Wall Street forecast sales of $357 million. Same-store sales sagged 13.9%.
Talbots said it would not provide a fourth-quarter or full-year forecast until more time has passed due to the likelihood of ongoing struggles in the retail market.
The women's specialty retailer also announced that it has locked up deals with lenders to convert $125 million in uncommitted working capital to committed working capital.
“This is a great step forward for Talbots as it serves to stabilize our liquidity during these most difficult and uncertain times, enabling us to focus on implementing the key strategic initiatives that will drive improved performance of our business," chief executive Trudy Sullivan said in a statement.
The company also said it is in talks with other lenders on similar transactions.