Talbots Beats on the Top Line

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Talbots (NYS: TLB) reported earnings on April 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Talbots beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly, while GAAP loss per share improved.


Margins shrank across the board.

Revenue details
Talbots booked revenue of $289.4 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $269.6 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $292.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.52. The 10 earnings estimates compiled by S&P Capital IQ anticipated -$0.51 per share on the same basis. GAAP EPS were -$0.77 for Q4, compared to -$0.04 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.1%, 510 basis points worse than the prior-year quarter. Operating margin was -14.5%, 1,430 basis points worse than the prior-year quarter. Net margin was -18.4%, 1,740 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $284.4 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is -$0.63.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 168 members rating the stock outperform and 216 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Talbots a green thumbs-up, and 79 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Talbots is hold, with an average price target of $2.64.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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