For the second quarter, the Company currently expects earnings per diluted share to be in the range of ($0.10) to ($0.08) on a GAAP basis, which includes acquisition related costs and adjustments of approximately $0.18 per share. This range is slightly ahead of the current First Call consensus estimate of ($0.10) per diluted share and compares to the Company's previously announced expectation of ($0.15) to ($0.05) on a GAAP basis. Excluding the estimate for costs and adjustments as outlined above, earnings per diluted share would be approximately $0.08 to $0.10. Further, earnings per diluted share excluding approximately $0.03 in stock option expense for the period would be approximately $0.11 to $0.13 per share for the combined company, compared to $0.35 reported last year for the Talbots only brand. Second Half 2006
Looking ahead to the fall season, Mr. Zetcher commented, "Both the Talbots and J. Jill brands have several key initiatives in place that we believe will drive improved top and bottom line performance in the back half of 2006. For the Talbots brand, within merchandising we have increased our style count, particularly in novelty, and we will be offering a better balance of product at entry level price points.
Further, we have made a significant change to our promotional strategy in the third quarter. Specifically, this August we will be adding a markdown event to clear out all remaining summer goods by approximately Labor Day. In addition, we will push back the start of our mid-season sale to later in September, and it will feature appropriate early fall and transitional items that are still relevant at that time. We feel these actions will generate more gross margin dollars, as well as support stronger regular price selling during the period."
marketing@alchempro.com
