Talbots reiterates 2008 outlook

Women's apparel retailer Talbots Inc. of Hingham reiterated today its fiscal 2008 outlook and hosted a conference call this morning to calm investors' fears about its financing.

Following the call, Talbots shares rose 55 cents, or 7 percent, to $8.38 in late morning trading on the New York Stock Exchange. The shares closed at $7.83 yesterday.

After the market closed Tuesday, HSBC and Bank of America Corp. said they will either cancel or not renew lines of credit to the retailer. The company issued a statement Wednesday saying it had cash to fund business initiatives through the year.

Before this morning, shares had dropped 39 percent since Tuesday.

The retailer said today it still expects fiscal 2008 earnings from continuing operations between 47 cents and 52 cents per share. Including discontinued operations, the company expects a net loss of 7 cents to 17 cents per share.

The company also said it still anticipates revenue growth of 3 percent based on slightly negative same-store sales, or sales at stores open at least a year.

Talbots said if it achieves its guidance, it will have enough liquidity to fund the turnaround of its business.

Analysts polled by Thomson Financial expect profit of 36 cents per share. (AP)