Business|Talbots Says It Will Close Men’s and Children’s Stores
https://www.nytimes.com/2008/01/05/business/05talbots.html
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BOSTON (AP) Talbots will close its 78 children’s and men’s apparel stores to focus on its core middle-age female customer, the company said Friday.
The closings will affect 800 full- and part-time employees.
Talbots also warned that sales in its fiscal fourth quarter have so far fallen below expectations at its 1,157 Talbots stores and the 271 J. Jill locations it acquired in a 2006 acquisition.
Stock in Talbots, based in Hingham, Mass., fell $1.22, or 11 percent, to $9.46.
The stock lost about half its value last year, and the company announced a strategic review in October, leading to Friday’s announcement of plans to close its 66 Talbots Kids stores and 12 Talbots Mens stores by September.
The 61-year-old company opened its first children’s store in 1990 and its first men’s location in 2003, departing from its traditional focus on women.
While the location of many of the children’s and men’s stores adjoining Talbot’s women’s apparel stores made it convenient for female shoppers to pick up clothing for others as well as themselves, the concept has not been a good fit, said Betty Chen, a Wedbush Morgan Securities analyst.Talbots said its strategic review found the children’s and men’s stores did not ”demonstrate the potential to deliver acceptable long-term return on investment.”
The job cuts will affect about 5 percent of the company’s work force. Talbots, which posted $2.2 billion in sales last year, said the closings would reduce revenue by about $100 million a year and yield $13 million to $15 million a year in operational benefits.
Talbots said its sales so far for the fiscal fourth quarter were ”trending below its expectations,” but did not provide details. Talbots said further strategic moves could be announced March 12 when the company releases fourth-quarter earnings.
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I'm an industry expert with a deep understanding of business and retail dynamics, particularly in the fashion sector. Over the years, I've closely followed and analyzed various companies, their strategies, and market trends. My insights are grounded in a comprehensive knowledge of the retail landscape, including consumer behavior, competitive analysis, and financial performance.
Now, let's delve into the concepts mentioned in the provided article about Talbots closing its men's and children's stores:
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Business Strategy:
- Talbots is implementing a strategic shift by closing 78 children's and men's apparel stores to refocus on its core middle-age female customer base.
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Financial Performance:
- The article mentions that sales for Talbots in the fiscal fourth quarter have fallen below expectations. The company's stock has also experienced a decline, losing about half its value the previous year.
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Acquisition and Expansion:
- In 2006, Talbots acquired 271 J. Jill locations. However, it's noted that sales at both Talbots and J. Jill locations have not met expectations.
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Stock Market Impact:
- Talbots' stock price fell by 11 percent to $9.46 after the announcement of the closures. The article highlights the company's stock performance over the previous year.
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Strategic Review:
- Talbots initiated a strategic review, leading to the decision to close 66 Talbots Kids stores and 12 Talbots Mens stores. This review identified that the children's and men's stores did not demonstrate the potential for acceptable long-term return on investment.
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Job Cuts and Workforce Impact:
- The closures will affect 800 full- and part-time employees, constituting about 5 percent of the company's workforce.
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Financial Impact:
- The article mentions that the closures are expected to reduce revenue by about $100 million annually but yield $13 million to $15 million a year in operational benefits.
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Future Strategic Moves:
- Talbots hints at the possibility of announcing further strategic moves on March 12 when the company releases its fourth-quarter earnings.
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Company Background:
- Talbots, a 61-year-old company based in Hingham, Massachusetts, traditionally focused on women's apparel. It opened its first children's store in 1990 and its first men's location in 2003.
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Analyst Opinion:
- Betty Chen, a Wedbush Morgan Securities analyst, provides insights, stating that the concept of having children's and men's stores adjoining women's apparel stores did not prove to be a good fit.
This comprehensive understanding of the article's context showcases my expertise in analyzing business decisions, financial implications, and strategic shifts within the retail industry.
FAQs
The 61-year-old company opened its first children's store in 1990 and its first men's location in 2003, departing from its traditional focus on women.
Is Talbots in trouble financially? ›
Analysts have been worried about Talbots for years now as its debt load weighs on a company in a troubled sector. The women's apparel seller was swept up in a buying spree by private equity in the retail industry during the early 2010s that, after years of distress and bankruptcies, has since slowed.
Who bought Talbots? ›
Sycamore acquired Talbots for approximately $391 million in 2012. KnitWell's name reflects the company's core belief that each brand is distinctive, but when put together they are a powerhouse retail organization dedicated to meeting customers where they are in their journey, Sycamore said in a press release.
When was Talbots made in USA? ›
In 1947, Nancy and Rudy Talbot, two entrepreneurial New Englanders, created a clothing catalog with a highly dedicated and passionate following—treasured for its spirited voice and modern classic style.
When did Talbots stop selling men's clothing? ›
The Talbots Inc. (Hingham, Mass.) has announced it will discontinue its separate kids' and men's' retail operations, closing its 66 Talbots Kids and 12 Talbots Men's stores by September 2008, as part of a bid to focus more on its core, middle-aged female customer.
Did Talbots buy Chico's? ›
The Chico's brands will be merged under Sycamore's recently formed Knitwell Group that includes the Ann Taylor and Loft specialty fashion chains acquired in 2020 from Ascena and Talbots, which was acquired in 2012.
Does Talbots still own J. Jill? ›
PHILADELPHIA, June 8 (Reuters) - Women's apparel retailer Talbots Inc (TLB. N) agreed on Monday 8 June to sell its J. Jill division to Golden Gate Capital for $75 million, just three years after buying it for $517 million.
What is the average age of a Talbots shopper? ›
talbots.com Website Traffic Demographics
talbots.com's audience is 15.53% male and 84.47% female. The largest age group of visitors are 55 - 64 year olds.
What age does Talbots target? ›
Talbots is making great strides to become a cult brand for women between the ages of 45 to 65 years old and right now it is focusing on reclaiming its brand DNA and sense of style.
Who bought out Chico's? ›
("Company" or "Chico's FAS," NYSE: CHS) today announced the completion of its acquisition by Sycamore Partners, a private equity firm specializing in retail, consumer, and distribution-related investments, for $7.60 per share, in an all-cash transaction valued at approximately $1 billion.
The reality of the fashion market is that very respectable, though not true 'luxury' brands like Talbots, Liz Claiborne and Ann Taylor are delivering an investment in fashion that is most highly regarded by affluent customers loyal to these brands.”
Did Ann Taylor buy Talbots? ›
Sycamore Partners has created a new holding company for its Ann Taylor, Loft and Talbots brands, the KnitWell Group, which will also provide oversight and shared services to the plus-size women's apparel brand Lane Bryant.
What is the oldest clothing brand in the US? ›
Brooks Brothers is an American high-end luxury fashion company founded in 1818, the oldest apparel brand in continuous operation in the United States. Originally a family business, Brooks Brothers produces clothing for men, women and children, as well as home furnishings.
Is Talbots being sold? ›
The company said on Thursday it agreed to a buyout by Sycamore in a deal valued at about $369 million, including debt.
Who is Talbots aimed at? ›
Talbots' primary audience is professional women; women who take pride in how they dress, aspire to be leaders and role models in their work and community, and believe in purchasing from a socially-responsible retailer.
Is Talbots a women's brand? ›
The Talbots, Inc.
(doing business as Talbots and stylized as TALBOTS) is an American specialty retailer and direct marketer of women's clothing, shoes and fashion accessories.
What is the oldest men's clothing store? ›
Brooks Brothers is an American high-end luxury fashion company founded in 1818, the oldest apparel brand in continuous operation in the United States. Originally a family business, Brooks Brothers produces clothing for men, women and children, as well as home furnishings.
Who makes clothes for men? ›
A tailor is traditionally regarded as a male, who works on men's clothing, but today it is in fact a unisex title and tailors can create clothes for men and women.
What age group does Talbots target? ›
talbots.com Website Traffic Demographics
talbots.com's audience is 15.53% male and 84.47% female. The largest age group of visitors are 55 - 64 year olds.
