The Talbots Inc. started off the year with declining web sales.
For the quarter ended May 2, e-commerce sales for Talbots decreased 11.7% to $33.8 million from $38.3 million in the first quarter of 2008. At the same time total sales for Talbots, No. 106 in the Internet Retailer Top 500 Guide, decreased year over year by 26.2% to $306.2 million from $414.8 million. Comparable-store sales fell by 26.9%.
Overall e-commerce accounted for 11% of total sales and 67.9% of direct sales, which declined 28.6% to $49.8 million from $69.7 million in the first quarter of 2008. Talbots posted a net loss from continuing operations in the first quarter of $12.4 million vs. net income of $22.3 million in the prior year. “Looking at our first quarter results, sales remained difficult and while in-line with our expectations, we are not satisfied,” says Talbots CEO Trudy Sullivan.
Going forward Talbots will concentrate on growing its core brand after earlier this month selling the assets of J. Jill to Golden Gate Capital, a San Francisco private equity firm that already owns a number of other direct marketing and web retailing brands. The price was $75 million. The assets were sold to Jill Acquisition LLC, a Golden Gate Capital affiliate. “This is a significant strategic step forward for Talbots as it enables us to focus our time, resources and attention exclusively on rejuvenating our core Talbots brand and return to profitable growth,” says Sullivan.
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