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What: Shares of retailer Talbots
So what: Talbots is attempting to transition into a different retail niche -- one that can draw in a younger customer -- and so far this doesn't appear to be working very well. Although third-quarter profits rose, inventory woes continued, same-store-sales figures showed a sizable 7.1% drop, and guidance badly missed the mark after the company mentioned it'll likely need to increase discounting in order to sell surplus inventory.
Now what: This isn't the first time we've seen inventory problems at Talbots and I suspect it won't be the last. It was low on inventory in September when the weather was unseasonably cold and watched rivals Chico's
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