Talbots Posts 1Q Loss, To Cut 20 Percent Of Jobs

HINGHAM, Mass. (AP) — Talbots Inc. on Tuesday recorded a fiscal first-quarter loss amid increased charges, and said it will institute new job cuts of 20 percent as it looks to lower costs and streamline operations.

The women's apparel retailer posted a loss of 44 cents per share, or $23.6 million, for the period ended May 2. That compares with a profit of $1.6 million, or 3 cents per share, in the same period a year earlier.

Loss from continuing operations was 35 cents per share in the latest quarter. Excluding restructuring and impairment charges of 12 cents per share, loss from continuing operations was 23 cents per share.

Analysts polled by Thomson Reuters, whose estimates generally exclude one-time items, forecast a loss of 49 cents per share.

Talbots, which announced Monday that it is selling its J. Jill brand for about $75 million, said the latest round of job cuts are part of its $150 million expense reduction plan and include the elimination of open positions. The 20 percent head count reduction is expected to result in annual savings of about $21 million.