Talbots Inc. cut its full-year and third-quarter revenue forecasts and said it will close about 75 to 100 stores by the end of 2013.
The news sent shares of the women's clothing company down $1.54, or 12 percent, to $11.00 in early trading Tuesday. The retailer is set to hold an investors meeting in New York on Tuesday.
Talbots now expects a fiscal 2010 revenue increase of about 1 percent. It previously predicted a rise in the low single digits.
Talbots fiscal 2009 revenue was $1.24 billion, which would imply about $1.25 billion for 2010. Analysts surveyed by Thomson Reuters predict revenue of $1.26 billion.
For the third quarter, the retailer anticipates a revenue decline in the low single digits. It previously forecast a low-single digits revenue increase.
The store closings will be done by allowing leases to expire and not renewing others. At the end of the second quarter, Talbots had 580 of its namesake stores.
The announcements come as the chain continues to work on a turnaround plan that began in 2007. The company Tuesday discussed a growth plan that includes anticipated sales between $1.4 billion and $1.5 billion by the end of 2013.
Talbots also maintained its third-quarter forecast for adjusted earnings of about 22 cents to 28 cents per share. It still anticipates full-year adjusted net income in a range of approximately 84 cents to 92 cents per share.
Analysts predict quarterly earnings of 27 cents per share and full-year net income of 90 cents per share. These estimates usually remove one-time items.
Last month, Talbots reported that it returned to a profit in its fiscal second quarter, cutting costs to offset slightly lower revenue.
Women's clothing companies have trimmed costs and reduced inventory to offset weak sales during the recession and continued uncertain economy.
Talbots is based in Hingham, Mass.
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