"We are delighted to close out the quarter having delivered five consecutive months of positive comps," Arnold B. Zetcher, Talbots chairman, president and chief executive officer said in announcing the figures for the quarter ending April 30. Zetcher said the positive numbers were largely driven by its core women's business.
The Hingham, MA-based retailer earned $34.5 million, or 63 cents per share, during the first quarter compared to the same period last year when earnings were $33.5 million or 58 cents per share. Net sales for the specialty retailer of women's, men's and children's apparel also increased to $446.5 million from $412.2 million in the first quarter of 2004.
Retail store sales increased 8% to $378.1 million compared to $348.6 million the same time last year. Included in retail store sales was an increase in comparable store sales of 4.3% for the thirteen-week period.
Quarterly growth was especially strong in Talbots Women stores for sizes 12W to 24W, the company reported, although children's clothing sales were weak.
The firm's direct-marketing sales, which include catalogue and internet, increased 8% during the quarter to $68.4 million compared to $63.6 million in the same quarter last year.
The company's gross margins, however, fell due to price cuts designed to clear out merchandise and rising inventory levels. About two-thirds of Talbots sales were from full-priced items, said the retailer, adding that it expects inventory levels to decrease following a clearance sale scheduled for June.
News of the strong financials drove the company's stock up 6 cents to $28.28 by the close of business Wednesday.
The company, which operates 1,054 men's, women's and children apparel stores under the Talbot brand, said it opened seven stores and closed two others during the last three months and plans to open nine additional stores with two planned closings during the second quarter of this year. Zetcher said those store openings puts the firm on par with its plans to open 50 stores during 2005.
The firm, which recently opened its 12th Talbot Men's store in Oakbrook, IL said it plans no new men's retail openings during the year. However, as it reassesses its business, it plans to fine-tune its men's retail concept.
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