Talbots Shares Decline as Much as 10% After Retailer Cuts Sales Forecast
Talbots Inc., the clothing retailer, dropped in New York trading after the company reduced its annual revenue forecast.
Revenue for the year will climb in the “low single digits” in percentage terms, less than the 3 percent to 5 percent increase previously projected, Talbots said in a statement today.
Talbots fell 14 cents, or 1.3 percent, to $10.97 at the 4 p.m. close of regular New York Stock Exchange composite trading. The shares have gained 23 percent this year.
Sales at the Hingham, Massachusetts-based retailer have fallen for three straight years as consumers clamped down on discretionary spending during the economic decline. The company today reported that revenue for the three months ended July 31 dropped to $300.7 million, missing the $313.9 million average of eight analyst estimates compiled by Bloomberg.
Second-quarter sales at stores open at least a year decreased 1.4 percent, Talbots said in the statement.
Talbots operated 580 stores in the U.S. and Canada at the end of the quarter.
To contact the reporter responsible for this story: Cotten Timberlake in Washington at ctimberlake@bloomberg.net.
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