Talbots Inc. (TLB) reported that its third-quarter net income was $14.55 million or $0.26 per share, compared to a loss of $170.76 million or $3.19 per share in the same quarter last year.
Adjusted third quarter net income from continuing operations was $17.2 million or $0.31 per share, compared to last year's net loss of $12.4 million or $0.23 per share on a comparable basis.
Total sales from continuing operations were $308.9 million , compared to $357.3 million last year. Comparable store sales declined 15.9% for the thirteen week period.
For the fourth fiscal quarter of 2009, the Company currently anticipates a loss from continuing operations in the range of $0.06 to $0.14 per share, excluding restructuring and impairment charges and other special items. Talbots expects fourth quarter top line sales to be impacted by reduced levels of markdown merchandise.
In a separate press release issued, the Company also said it is undertaking a comprehensive financing solution to delever its balance sheet and accelerate growth. It consists of three related transactions: an Agreement and Plan of Merger between Talbots and BPW Acquisition Corp. pursuant to which Talbots will acquire BPW in exchange for Talbots common stock; the retirement of all equity currently held by Talbots majority stockholder, Aeon (U.S.A.), Inc., and the repayment of all of the Company's existing debt and a commitment for a new $200 million senior secured revolving credit facility from GE Capital.
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