Talbots Reports 2007 First Quarter Results, in Line with Previously Revised Expectations.(Financial report)

Company Updates Full Year 2007 Outlook

HINGHAM, Mass. -- The Talbots, Inc. (NYSE:TLB) today announced results for the thirteen-week period ended May 5, 2007. Net income for the first quarter was $5.2 million or $0.10 per share on a reported basis and includes acquisition related costs and adjustments of approximately $0.13 per share. Excluding the acquisition related costs, earnings per diluted share were $0.23 for the combined company. This combined company result includes a first quarter loss for the J. Jill brand of $0.09 per share, and a profit for the Talbots brand of $0.32 per share, compared to $0.51 reported last year for the Talbots only brand.

Total consolidated Company sales for the quarter were $573.6 million. By brand, retail store sales were $387.4 million for Talbots compared to $384.9 million last year, and were $80.6 million for J. Jill. Consolidated direct marketing sales were $105.6 million including catalog and Internet.

Total Company comparable store sales declined 3.5 for the thirteen-week period. By brand comparable store sales for Talbots decreased 3.9. For the J. Jill brand, comparable store sales decreased 1.2 in the period.

Arnold B. Zetcher, Talbots Chairman, President and Chief Executive Officer, commented, "Although our results were in line with our previously revised expectations, we are clearly disappointed in our first quarter performance. We had been encouraged by the strength of our Talbots brand regular-price selling trends in March, particularly in weeks two through four, with regular-price comps in the high double digit range. However, as was ...