Altman Z-Score, Trailing 12 Months: 2.62

Altman Z-Score 2009: 1.23

Talbots ( TLB) Z-Score has improved considerably over the past year, moving from a 1.23 at the end of 2009 to 2.62 for the trailing twelve months.

This turnaround is primarily due to a deal the women's apparel retailer completed earlier in the year that allowed it to reduce its debt and buy out its largest shareholder, Aeon. As part of this deal, Talbots acquired BPW Acquisitions, a special-purpose acquisition firm, which provided the company with more flexible financing.

In its first quarter, Talbots narrowed its loss to $7.1 million, or 12 cents a share, as same-store sales grew 2.4%. Talbots forecasts full-year sales to grow between 3% and 5% and earnings to come in at break-even to 5 cents a share.

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