Talbots reports 4Q loss, plans store closings

Associated Press

HINGHAM -- Clothing retailer Talbots Inc. reported a smaller-than-expected fourth-quarter loss this morning on a drop in revenue and said it expects to speed up a plan to renovate some stores and close others as its tries to change its image.

Its shares soared $1.18, or 24.6 percent, to $5.98 in morning trading.

The retailer said it expects to renovate about 70 stores in fiscal 2011. In addition, it said it expects to close about 90 to 100 stores and consolidate or downsize about 15 to 20 stores over two years. It had 568 stores in 46 states and Canada at the end of January.

Talbots is trying to change a stodgy image and focus on more trendy fashions that appeal to younger shoppers.

The company reported a net loss of $2.8 million, or 4 cents per share, for the three months ended Jan. 29 compared with net income of $4.1 million, or 7 cents per share, during the same period a year ago.

Revenue fell to $292.6 million from $315.9 million.

The company said it had an adjusted loss of 14 cents per share. Analysts polled by FactSet expected a loss of 18 cents on $295.5 million in revenue.

For the full year, the company reported net income of $10.8 million, or 16 cents per share, compared with a net loss of $29.4 million, or 55 cents per share, in 2009. Revenue fell to $1.21 billion from $1.24 billion.

The retailer said it expects to renovate about 70 stores in fiscal 2011. In addition, it said it expects to close about 90 to 100 stores and consolidate or downsize about 15 to 20 stores over two years. It had 568 stores in 46 states and Canada at the end of January.

The company reported a net loss of $2.8 million, or 4 cents per share, for the three months ended Jan. 29 compared with net income of $4.1 million, or 7 cents per share, during the same period a year ago.

Revenue fell to $292.6 million from $315.9 million.

The company said it had an adjusted loss of 14 cents per share. Analysts polled by FactSet expected a loss of 18 cents on $295.5 million in revenue.

For the full year, the company reported net income of $10.8 million, or 16 cents per share, compared with a net loss of $29.4 million, or 55 cents per share, in 2009. Revenue fell to $1.21 billion from $1.24 billion.