Hingham, Mass. Talbots Inc. on Tuesday recorded a fiscal first-quarter loss amid increased charges, and said it will institute new job cuts of 20% as it looks to lower costs and streamline operations.
The women's apparel retailer posted a loss of $23.6 million for the period ended May 2. That compares with a profit of $1.6 million in the same period a year earlier.
Talbots, which announced Monday that it is selling its J. Jill brand to Golden Gate Capital 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% head-count reduction is expected to result in annual savings of about $21 million.
In February the retailer announced that it would cut 370 corporate-level jobs. The new cuts are on top of that. Sales for the first quarter fell 26% to $306.2 million from $414.8 million as same-store sales dropped 26.9 %. On average, analysts expected revenue of $313.2 million.