Sterne Agee Reports TLB Q4 Results

Sterne Agee has issued a report on Talbots Inc. TLB fourth quarter results. According to the report, "Talbots reported an adjusted loss of ($0.14), slightly ahead of the guidance range of ($0.15-$0.19), with SA/FC at ($0.18)/($0.20). Total sales decreased 7.4% to $292.6 million, below our $301.3 million estimate. Comps were down 7.3%, worse than guidance of (6%) and our latest (6.5%) projection. Direct sales were down 5.3% in contrast to our estimate of increases of 6.5%. Gross margins were down 610 bp, better than our projection of an 830 bp decline, with inventories at year-end up 10.8% contrasted with the 7.4% sales decline." TLB has a Buy Rating and a $7.50 Price Target. TLB closed at $6.02 yesterday.