Web sales fell sharply for The Talbots Inc. in the second quarter, but the women’s apparel retailer expects a new web site redesign will eventually generate more interest – and orders – from online shoppers.
For the second fiscal quarter ended Aug. 1:
- Web sales declined 41% to $24.9 million from $42.0 million.
- Total sales were $304.6 million, down 23% compared with Q2 2008 sales of $395.2 million.
- Comparable-store sales decreased 24.9%.
- Internet sales accounted for 8% of sales in Q2 2009 compared with 10.6% in the prior year quarter.
- Catalog sales decreased 34% to $12.5 million from $18.9 million.
- Net loss from continuing operations was $20.5 million compared with last year’s net loss of $12 million.
For the first six months of fiscal 2009:
- Web sales declined 17.1% to $74.7 million from $90.1 million in the first half of 2008.
- Total sales from continuing operations were $610.8 million, down 25% from $810.0 million in the prior year period.
- Comparable-store sales declined 25.9%.
- The web accounted for 12.2% of total sales versus 11.1% in 2008.
- Catalog sales decreased 38.5% to $24.9 million from $40.5 million
- Net loss from continuing operations was $39.3 million compared with last year’s net income of $6.6 million.
The retooled web site, which operates on an e-commerce platform from Art Technology Group, features cleaner and bigger images, improved navigation and several new personalization features. An updated rich media application on Talbots.com also lets visitors shop by outfit and see recommended shoes and accessories. Talbots launched the new design last month.
“This new platform offers much greater functionality, so our customers can now shop seamlessly across all three channels,” Talbots CEO Trudy Sullivan told analysts on a recent earnings call. “The visuals, navigation and product information are enhanced, with a particular emphasis on personalization of content and recommendations. This new platform gives us improved segmentation of our customer file. Overall, this was an important strategic investment for Talbots as we have seen a shift in demand away from catalog towards the web.”
During the second quarter Talbots, No. 106 in the Internet Retailer Top 500 Guide, also completed the sale of J. Jill to Jill Acquisition LLC, an affiliate of Golden Gate Capital, a private equity investment firm.
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