UPDATE: Talbots Head Of Store Operations Is Leaving Company
February 10 2011 - 11:23AM
Dow Jones News
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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