Talbots 3Q same-store sales fall on lower traffic

HINGHAM, Mass. - Specialty retailer Talbots Inc. said Thursday that its fiscal third-quarter same-store sales fell 13.9 percent, hurt by declining customer traffic.

Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Total sales for the period ended Nov. 1 dropped to $357 million from $414 million, while retail store sales slipped to $303 million from $345 million a year ago.

Talbots blamed its lackluster third-quarter results on decreased customer traffic due to economic conditions.

The company's third-quarter results reflect its namesake brand and concepts only, as it plans to sell its J. Jill brand.

Year-to-date same-store sales fell 10.9 percent, while total sales declined to $1.17 billion from $1.28 billion. Retail store sales slid to $983 million from $1.08 billion.

The company said it will continue to review expansions, capital expenditures, working capital investment and its dividend payout as it prepares for next year.

Talbots expects to report third-quarter earnings on Nov. 25.

In premarket trading, Talbot shares fell 40 cents to $7.14.

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