Wider loss expected at Talbot's

Women's apparel retailer Talbots Inc., today said lower-than-expected performance at both its Talbots and J. Jill chains will cause it to only break even on a per share basis in the fourth quarter.

The expectation for break-even earnings per share compares with analysts' forecast for a profit of 30 cents per share, based on a poll by Thomson Financial.

Talbots said the J. Jill business, acquired last year, will post a wider than expected loss of 12 cents per share. In addition, costs related to the acquisition should reduce earnings by another 14 cents per share. Talbots also will incur 4 cents per share in stock-option expenses.

Fourth-quarter same-store sales, or sales in stores open at least one year, a key retail industry measure of performance, are expected to be flat.

For the fiscal first-quarter, Talbots expects earnings between 36 cents and 43 cents per share, while analysts were looking for net income of 56 cents per share. (AP)