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Earnings Analysis: 
Talbots Q3 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 11:00 AM ET December 22 2008


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Adrienne Tennant – Friedman, Billings, Ramsey

Yes, I guess I have two house-keeping things. On the kids and men’s closures, what was the cash closure per store or either in dollars and also in number of months of rent, I mean if you can give that. My second just house-keeping; historically, can you tell us what the average merchandise margin was and what the peak merchandise margin was? Thank you.

Ed Larsen

Well the closures vary by store; each one is a case by case basis, but if you look at the overall average, I think we’ve closed the kids and men’s businesses with I believe about nine months rent, that’s our average I think.

Operator

Your next follow up question is from Richard Jaffe with Stifel Nicolaus.

Richard Jaffe - Stifel Nicolaus

Just a follow-up on the catalogue and the shift in the holiday book from 3Q to 4Q and obviously it’s hard for us to understand it. Could you just provide some color on the results of the October book; up to plan, below plan and then the outlook for the holiday book?

Trudy Sullivan

The October book and September book were both up to our plan and we moved the holiday book out of October into the beginning part of November, because we’re committed to have our floor set and our catalogue drop all at the same time. We feel it’s a much stronger impression on the brand and so what we’re looking at right now, it’s very favorable for fourth quarter. I mean, the way that the book is behaving right now, we’re very pleased with the response. So as we said, it’s very favorable to the fourth quarter direct business.

Operator

Your next follow up question comes from Todd Slater with Lazard Capital Management.

Jennifer Cook - Lazard Capital Management

Hi, it is Jennifer. I actually have a couple of follow-ups. Maybe rephrasing that last question, could you quantify the impacts of the shift on the third quarter and then before I get cut off again let me ask a couple of more.

Ed Larsen

Jennifer, what was that question?

Jennifer Cook - Lazard Capital Management

Could you quantify the impacts of that catalogue shift into November from October on the third quarter?

Trudy Sullivan

We have it actually in the opening comment…it’s actually in the press release Jennifer, the decline in sales in the third quarter direct business and we say it was strategically because of the shift in this book.
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