Talbots posts loss after J. Jill writedown, weak sales
Talbots Inc. of Hingham reported a loss in the fourth quarter as same-store sales fell and the apparel retailer took a hefty charge related to problems at its J. Jill women's clothing stores.
For the fourth quarter, Talbots lost of $171.4 million, compared with net income of $17,000, in the prior year.
The fourth-quarter loss included a preliminary charge of $144 million to write down the value of J. Jill, which was acquired in May 2006.
Quarterly same-store sales fell 6 percent due to weak performance in November and December. Same-store sales in January increased in the low single digits.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
"2007 was a difficult year for Talbots," Chief Executive Trudy F. Sullivan said in a statement. "However, we feel very good about the progress we have made, and believe we are well-positioned to succeed in 2008. Despite the challenges of a weak economic environment, we identified and implemented a number of key initiatives to drive improved short- and long-term performance."
In January, Talbots said it will close its 78 children's and men's apparel stores to focus on its core middle-aged female customer, a move that will affect 800 employees.
For the full fiscal year, Talbots lost of $188.8 million, compared with earnings of $31.6 million, in the prior-year period.
Full-year same-store sales declined 5.5 percent.
For previous Globe coverage of the struggles at Talbots, click here.
(AP)
