By Karen Talley Of DOW JONES NEWSWIRESNEW YORK (Dow Jones)--Talbots Inc. (TLB), in the midst of trying to shake off its own missteps and the weak economy, is losing the executive who ran its stores and outlets.
The women's apparel retailer said in a regulatory filing that John Fiske is departing as chief stores officer to pursue other opportunities. The company said it is looking for a replacement. Talbots reported having 584 stores at the end of its fiscal third quarter. The quarter ended Oct. 30.
Fiske was named to oversee retail operations in the U.S. and Canada in March 2009. He had headed human resources since April 2007 and had also received the responsibility for business development.
A Talbots spokesperson wasn't immediately available to comment.
The departure follows Talbots last month slashing its fourth-quarter outlook on worse-than-expected preliminary sales figures because of a drop-off that began in the second half of December.
Talbots, which has been trying to transform its image from a stodgy women's clothier to a more trendy destination, has had erratic success in recent quarters. The company's turnaround efforts have involved making corporate-level layoffs, suspending its quarterly dividend and freezing its pension plans, among other cash preservation measures.
For the period ended Jan. 29, Talbots now expects a loss of 15 cents to 19 cents a share, compared with the estimate it gave in December for a loss of 5 cents a share to earnings of 3 cents a share.
The company said its sales were down 7% compared with a year earlier and worse than its prior view for a range from flat to a low-single-digit decline. Talbots cited weaker-than-expected response to its merchandise, highly competitive promotional activity and weather issues.
For the third quarter, Talbots' profit rose 17% on improved margins, although sales fell as the same store-sales decline was much worse than analysts' expectations.
Talbots' stock has taken a beating, down 31% since the year began; it is off 44% over the last 12 months. In early trading Thursday, the stock was down 11 cents to $5.76.
Shares were $50 higher 10 years ago when the retailer was enjoying a strong economy and a surge in professional women spending on business apparel.
The only surprise here, it seems, is that there is some surprise over the disaster at Talbot's! Without knowing Mr. Fiske, it nevertheless seems inevitable that a fashion retailer, placed in the midst of a monumental shift in the economy, would NEVER succeed with someone leading who basically doesn't understand the customer. It seems as though Mr. Fiske as an HR leader would not have the necessary instinct to direct Talbot's marketing to meet customer needs in as shifting economy. He might do a brilliant job with the employees of the company, but REALLY-- did the man even stand a chance to meet the Company's needs? One look at GM's sad history of letting the bean counters run the company into the ground rather than have "car guys" run the company should have been history enough... it seems Talbot's set out to prove the same dynamics work in the women's fashion business, as well. And the stock holders have no one to blame other than themselves and the Board Trustees who let this happen. Good luck to a good company going forward!
ReplyDeleteDitto to the above comment. As a Talbots shopper and waning Talbots loyalist they need to get current with the times. No longer is retail a 'brick & mortar' business. The successful retailers have a "cooks-in-the-kitchen" philosophy; executives are in the field consistently and frequently talking to stake holders that matter: customers first and front line field staff next. If an executive is not accomplishing this very basic task how can they accurately create strategic plans. I wish Talbots all the success as I love the brand.
ReplyDeleteTalbots has lost it's base - very dysfunctional in it's offerings, inconsistent in it's fit and undefined as to what they are. This has been going on far longer than the current recession - another Eddie Bauer, I'm afraid. No identity.
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