Wednesday, September 07, 2011

The More Fashions Change at Talbots....

In yet another reboot, actress Julianne Moore, 51, will be the new face of yet another splashy ad campaign over at The Talbots Inc (TLB-$2.53).

Constant brand tinkering has also blurred the “classic” clothing that Talbots is known for, and turned off traditional customers - just look at trailing 12-month operating metrics (ending January 2011): revenue growth was off 1.8% (compared to average gain of 5.9% in apparel industry); gross margin of 29.2% trailed industry average by 630 basis points; and, net operating margin was an anemic (1.0) percent, compared to an apparel industry gain of 3.6 percent, according to Thomson Reuters data.

How much “Bling! Bling!” is left on the apparel retailer's balance sheet?

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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