The chains were especially hit hard by the "poor customer acceptance" of spring and summer assortments, says Arnold Zetcher, the retailer's chairman. On a broader scale, due to a slowdown in the housing market and other broad economic issues, Talbots was faced with a "shift in consumer sentiment," he says.
During the quarter, which ended Aug. 4, net sales fell to just more than $571 million, compared with a bit higher than $572 million during the same year-ago period. Talbots posted a net loss of $13.3 million, while last year's Q2 resulted in a $3.9-million slide.
The company opened five new Talbots stores and six J. Jill units, brining its total to 1,135 Talbots and 256 J. Jills. Talbots also closed three of its namesake stores during the quarter.
Executives are expecting a better second half of the year, predicting Talbots same-store sales to come in flat and J. Jill's from flat to slightly up. Their earnings-per-share forecast, from 42 cents to 48 cents, are in line with previous estimates.
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