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The Talbots Inc Q1 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 3:23 PM ET June 22 2009


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As well as a topic product and then my second question is that if you could talk about your productivity, you talk about sales, your metrics like circulation, productivity per page, and can we expect to see improvements in your Internet side? Thanks a lot.

Trudy F. Sullivan

Well we are launching a new Internet platform which you will see by the end of the summer, early fall, which gives us tremendous upgrading capability on our web. We are actually planning our circulation down for the back half but really because we are going against some prospecting circulation in the base period that we do not feel is necessary to repeat but certainly I have some mail that is going to be mailed as aggressively as we have always mailed it. I think we have done that and internally you have got some sensitivity in some key books in the back half of the year. I feel that we are in really a strong position.

Jennifer Black - Jennifer Black & Associates

Fantastic. Thanks a lot. Good luck.

Trudy F. Sullivan

Thanks Jennifer.

Operator

Our next question comes from the line of Kimberley Greenberger with Citigroup.

Kimberley Greenberger – Citigroup

Right thank you good morning.

Trudy F. Sullivan

Hi Kimberley.

Kimberley Greenberger – Citigroup

Trudy the stores look I think really quite improved over the last 6 to 9 months and I know it is probably frustrating we are not seeing it translating through the top line. I’m wondering what can you do in this kind of environment to drive that top line a little bit more. Are there any marketing strategies that you are looking at or maybe you can just talk about how you are thinking about the business? If a good product in not enough to get the top line going what else is there?

Trudy F. Sullivan

Kimberley our reaction has been to be extremely conservative first of all and season our ownership so our inventory levels are extremely conservative. I think what we’ll see as we wrap around the back half of the year is we will take some additional steps on proven products like the some of these core key items. It is difficult and our own research does tell us that she has not eased up on herself much in the first half of the year. But it is critical that we continue to get the kind of comments that we have got from her in terms of we like the direction of the product. We like what you are doing. Successive groups have been…the May June groups have been even more productive than the March February group. So, we are seeing that. We do have this new to file because of our new marketing program which will start to we hope generate additional sales for us as we start to wrap through the back half of the year. Because our inventories are in good shape we are not as religiously promotional. We don’t want to run the brand that way. So, she does love a deal, she loves a sale. We give her our strategic promotions throughout the season but I believe because of her appetite shopping right now, too much of that will actually devalue the transaction more than we need to. So, we are slogging through this environment and I don’t have a perfect answer other than we need to continue to deliver really great products that she loves and we have aggressive outreach to her through e-mail and through our own proprietary mailing and we continue to focus on our best customers who are still purchasing and hopefully as we wrap the year we will start to see that pay off. But it is encouraging for us in our own research that she continues to tell us she likes the track that we are on. So, we feel that when she eases up on her desire to shop we will be in the right position.

Kimberley Greenberger – Citigroup

Great thanks Trudy.

Trudy F. Sullivan


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