HINGHAM, Mass. Talbots reported second-quarter income from continuing operations was $0.5 million or 1 cent per share, compared with last year’s loss from continuing operations of $20.5 million, or 38 cents per share.
“Our second quarter and year-to-date results demonstrate the steady progress we are making as a result of our strategic initiatives,” said Trudy Sullivan, Talbots president and CEO. “In the second quarter, we again generated significant gross margin expansion, successfully managed expenses and achieved better than expected improvement in adjusted earnings per share.”
Total sales for the quarter decreased 1.3% to $300.7 million, compared with $304.6 million in the same period last year. Comparable-store sales decreased 1.4%.
The company reported that loss from continuing operations for the 26 weeks ended July 31 was $6.6 million, or 10 cents per share, compared to last year’s loss from continuing operations of $39.3 million, or 73 cents per share.
Total sales for the first half of the year increased 1.7% to $621.4 million, compared with $610.8 million in the same period last year. Comparable-store sales increased 0.5% for the 26 week period.
Full-year adjusted earnings per share from continuing operations are anticipated to be in the range of approximately 84 cents to 92 cents per share, excluding special items, the company reported. For the third quarter of 2010, the company anticipates adjusted earnings per share from continuing operations in the range of approximately 22 cents to 28 cents per share.
Sullivan concluded, “While we are mindful of the current macroeconomic conditions, we continue to be confident in our strategy. We are entering the fall season with a strong inventory position and initiatives already in place that we believe will help drive continued improvement across our business and long-term sustainable growth and profitability.”