Oppenheimer Reports The Talbots 4Q Beats Previously Issued Guidance

According to Oppenheimer, The Talbots TLB 4Q beats previously issued guidance. Oppenheimer reported that TLB reported FY4Q10 adjusted EPS of $(0.14), above consensus estimates of ($0.17) and guidance of $(0.15)-$(0.19) provided on 1/11. “Revenues decreased 7.4% on a -7.3% comp (vs. -7.2% last year). GM decreased 610 bps due to higher markdowns/promotions vs. LY. SG&A levered 170 bps to 29.4%, reflecting expense management and a one-time adjustment to gift card breakage income. Total debt decreased to $25.5M from $461M LY; TLB generated $25.3 in FCF. Reiterate Outperform rating and 12-18-month PT of $11. Encouraged by recent momentum, we believe TLB is in the very early stages of its turnaround which should gain traction in 2H as stores benefit from IT initiatives and store closures.” The Talbots closed yesterday at $4.80.