Jun 9, 2009
Talbots to cut jobs; posts Q1 loss
Jun 9, 2009
June 9 (Reuters) - Talbots Inc (TLB.N) posted a much narrower-than-expected loss on Tuesday 9 June, a day after the women's apparel retailer decided to sell its J.Jill division to Golden Gate, and said it is cutting corporate headcount across all locations by about 20 percent.
Talbots, which is majority owned by Japan's Aeon Co Ltd (8267.T), said the job cuts were part of its strategy to save $150 million annually.
The company, whose clientele consists mainly of women above 35 years, also expects second-quarter loss from continuing operations between 50 to 58 cents a share.
Analysts, on average, were expecting a loss of 68 cents, excluding items.
For the first quarter ended May 3, net loss from continuing operations was $18.8 million, or 35 cents a share, compared with a net profit of $18.5 million, or 35 cents a share a year ago.
Excluding items, Talbots posted a loss of 23 cents a share, while analysts were expecting a loss of 49 cents.
Sales dropped to $306.2 million, from $414.8 million in the same quarter a year ago.
Shares of the company had closed at $5 Monday 8 June on the New York Stock Exchange. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Ratul Ray Chaudhuri)
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