Barclays Maintains an 'Underweight' on Talbots (TLB); Q2 Review - Lowering Foward Outlook

Barclays maintains an 'Underweight' on Talbots (NYSE: TLB) price target of $2.00.

Barclays analyst says, "TLB reported 2Q/11 adjusted EPS of ($0.51) versus our ($0.46) estimate and consensus of ($0.44). The $0.05 miss was operating and due to a lower gross margin and higher SG&A expense. Management's 3Q/11 guidance for a gross margin decline of 600 to 800 basis points and a slight decline in SG&A dollars implies a loss of $0.10 to a loss of $0.18. We are lowering our 3Q EPS estimate to a loss of $0.15 from a profit of $0.14, FY 2011 to a loss of $0.81 from a loss of $0.27 and 2012 to a loss of $0.25 from a profit of $0.24."

For more ratings news on Talbots click here and for the rating history of Talbots click here.

Shares of Talbots closed at $2.96 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Viking Holdings (VIK) PT Raised to $82 at Mizuho
• Mizuho Reiterates Outperform Rating on Broadcom Limited (AVGO) Into EPS
• Intchains Group Ltd (ICG) PT Lowered to $2 at Benchmark Following 1H Results