Thursday, December 1, 2011

Talbot's to Close 110 Stores

More retail doom was in the offing today with the announcement by clothing retailer Talbot's that it plans to axe 110 stores:
Talbot's Inc. said Thursday it'll cut 9% of its corporate headcount and close 110 stores by 2013, after it swung to a third-quarter loss and projected lower sales in the coming quarter. Talbot's said it lost $22 million, or 32 cents a share in the third quarter, compared to income of $17 million, or 24 cents a share, in the year-ago period. Talbot's adjusted loss was 22 cents a share in the latest quarter. Sales fell to about $280 million, from $299 million. Wall Street analysts expected Talbot's to report a loss of 16 cents a share on sales of $271.3 million, according to a survey by FactSet Research. Talbot's November same-store sales dropped 4%. Talbot's said it plans to save about $50 million a year by cutting staff and closing stores. It'll shut 83 locations in 2011, 25 in 2012 and two more in 2013.
Interesting that they would take such a drastic action based upon one bad quarter. It is almost enough to lead one to believe that Talbot's corporate management expects that the recent quarterly loss will not be merely a short-term phenomenon but a permanent change in business conditions. I'll bet they are right.


  1. Good riddance. Damn ugliest clothes around.

    Perhaps US retail is learning that ugly stuff doesn't sell well?

    (Gap, are you listening?)

  2. @Anon - probably not as long as I see people wearing it! :)

  3. Goodbye Talbots. Ugly clothes. Super snotty help. The bad memories from working with you while I was with IBM. See you later. A whole lot later.