The purveyor of classic clothing reported third-quarter profits down nearly 27% to $20 million, or $0.37 per share. (Bear in mind that last year's third quarter included a tax benefit that boosted the company's earnings by $0.08 per share.) Although Talbot's sales were 3% higher at $426.3 million, same-store sales were rather dismal, dropping 2%. The company also lowered its forecast for the fourth quarter.
Talbots' press release headline did point out that its third-quarter earnings were "better than expected." Analysts predicted earnings of $0.36 per share, which the company did beat by a penny. However, the shares were up by around 5% at one point Wednesday, and I find that a bit baffling. Some investors may be hinging their hopes on the company's statement that October sales trends were improving, and that it's ready for the holiday season. But how does that optimism fit with Talbots' lowered fourth-quarter guidance?
As with rival J. Jill
Talbots, on the other hand, looks a bit cheaper than J. Jill on a P/E basis, but it still hasn't proved that it really can improve its growth rate against successful rivals like Chico's FAS
Here's some related content from Fooldom:
- J. Jill's recent tumble.
- Rival Chico's flourished, on the other hand, despite hurricane season.
- Months ago, people were wondering if it was time for Talbots.
Alyce Lomax does not own shares of any of the companies mentioned.