Talbots' quarter-to-date sales trends better than expected
18 Oct '06
2 min read
The Talbots Inc announced that quarter-to-date sales trends for the period beginning July 30, 2006 are better-than-anticipated, driven primarily by very strong sales across all Talbots brand channels.
As a result, Talbots currently expects total Company third quarter comparable store sales to be in the positive mid-single digit range, up from its previous outlook of low-single digits.
Talbots also announced that it is making significant progress in integrating the J. Jill brand, and has accelerated certain key actions into the third quarter that were originally planned for later in the fall.
The Company now expects cost saving synergies in 2007 to be approximately $36 million, versus its prior estimate of greater than $30 million.
Arnold B. Zetcher, Talbots Chairman, President and CEO, commented, "We are very pleased with our strong performance for the quarter-to-date period, which reflects our customers' positive response to Talbots brand fall merchandise assortments. Sales were healthy across all channels in August, and gained significant momentum in September."
"Four of our key initiatives put in place last year, including a broader selection of styles, which increased by 25 percent over last year, sharper pricing across all merchandise categories, strategic changes to our product flow, as well as adjustments to our promotional calendar during the period are all important contributors to our robust sales."
In terms ofthe J. Jill brand, Mr. Zetcher had the following comments, "We are making solid progress in improving the execution of both the retail and direct marketing businesses for the J. Jill brand. Specifically, we have unified the promotional calendar for the late fall season, which is a key initiative that we believe should drive stronger sales and gross margin through consistent pricing across channels."
"However, we do not expect to see the real benefit of our many actions to our top line until the second quarter of 2007."
Sales for the J. Jill brand represent approximately 20% of the total combined company sales volume.
marketing@alchempro.com
