Barclays Maintains an 'Underweight' on Talbots (TLB); 3Q 2011 Earnings Review
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Price: $2.76 --0%
Rating Summary:
2 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Underweight' on Talbots (NYSE: TLB) price target of $2.00.
Barclays analyst says, "TLB reported a 3Q/11 adjusted loss of $0.22 per share versus our estimate for a loss of $0.15 per share and consensus of a loss of $0.14. The $0.07 miss was operating and due to a lower gross margin and higher SG&A expense. Management's 4Q/11 guidance for a gross margin decline of 600 to 800 basis points and flat SG&A dollars implies a loss of $0.45-$0.53. We are lowering our 4Q EPS to a loss of $0.50 from a loss of $0.23, FY 2011 to a loss of $1.16 from a loss of $0.81and 2012 to a loss of $0.62 from a loss of $0.25."
"We believe 2012 should benefit from an improved inventory position, reduced costs, the store closures, 25% of the fleet having been remodeled, and the opening of upscale outlets. However, with sourcing costs rising in the second half, it is a very tough time to be struggling with product."
For an analyst ratings summary and ratings history on Talbots click here. For more ratings news on Talbots click here.
Shares of Talbots closed at $1.62 yesterday.
Barclays analyst says, "TLB reported a 3Q/11 adjusted loss of $0.22 per share versus our estimate for a loss of $0.15 per share and consensus of a loss of $0.14. The $0.07 miss was operating and due to a lower gross margin and higher SG&A expense. Management's 4Q/11 guidance for a gross margin decline of 600 to 800 basis points and flat SG&A dollars implies a loss of $0.45-$0.53. We are lowering our 4Q EPS to a loss of $0.50 from a loss of $0.23, FY 2011 to a loss of $1.16 from a loss of $0.81and 2012 to a loss of $0.62 from a loss of $0.25."
"We believe 2012 should benefit from an improved inventory position, reduced costs, the store closures, 25% of the fleet having been remodeled, and the opening of upscale outlets. However, with sourcing costs rising in the second half, it is a very tough time to be struggling with product."
For an analyst ratings summary and ratings history on Talbots click here. For more ratings news on Talbots click here.
Shares of Talbots closed at $1.62 yesterday.
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