Talbots Inc. (TLB), in the midst of trying to shake off its own missteps and the weak economy, is losing the seasoned executive who ran its stores and outlets.

The women's apparel retailer said in a regulatory filing that John Fiske is departing as chief stores officer to pursue other opportunities. Fiske was also in charge of directing the launch and the running of Talbots' upscale outlet business. The company said it is looking for a replacement.

The departure follows Talbots slashing its fourth-quarter guidance last month, another setback in the retailer's erratic success at trying to transform its image from a stodgy women's clothier to a more trendy destination for younger women.

Fiske's departure "is further evidence that the turnaround at Talbots is still far, far away," said Randal Konik, retail analyst at Jefferies & Co. "Following a brief period of significant improvements in product, brand perception, infrastructure, and balance sheet, Talbots' story seems to be falling apart as sales plummet and uncertainties develop within the management team."

The company's turnaround efforts have involved getting into the outlet business, but also making corporate-level layoffs, suspending its quarterly dividend and freezing its pension plans, among other cash preservation measures.

Fiske was named to oversee retail operations in the U.S. and Canada in March 2009. Talbots reported having 584 stores at the end of its fiscal third quarter, which ended Oct. 30. Before being named retail chief, Fiske headed human resources from April 2007 and also received the responsibility of business development. Fiske was senior vice president of human resources at J. Jill Group before Talbots acquired it in May 2006. He also worked at Abercrombie & Fitch Co. (ANF), Kenneth Cole Productions Inc. (KCP) and Timberland Co. (TBL).

A Talbots spokesperson did not respond to a request for comment.

Fiske's departure follows Talbots last month significantly reducing its fourth-quarter outlook on worse-than-expected preliminary sales figures because of a drop-off that began in the second half of December.

For the period ended Jan. 29, Talbots now expects a loss of 15 cents to 19 cents a share, compared with the estimate it gave in December for a loss of five cents a share to earnings of three cents a share.

The company said its sales were down 7% compared with a year earlier and worse than its prior view for a range from flat to a low-single-digit decline. Talbots cited weaker-than-expected response to its merchandise, highly competitive promotional activity and weather issues.

For the third quarter, Talbots' profit rose 17% on improved margins, although sales fell as the same store-sales decline was much worse than analysts' expectations.

Shares are off 2.9% to $5.70, part of their 33% drop since the year began, just six weeks ago. The stock was $50 higher 10 years ago when the retailer was enjoying a strong economy and a surge in professional women spending on business apparel.

   -By Karen Talley, Dow Jones Newswires; 212-416-2196; 
   karen.talley@dowjones.com
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