Talbots' Strong 2Q Due in Large Part to Holding Prices Steady

Talbots said it returned to profitability in the second quarter, but sales fell because the company kept the line on prices to a large degree. While the recession has made it common to deeply discount, "We did not react to what became a very aggressive promotional environment," Chief Executive Trudy Sullivan said. Instead, Talbots went after margin growth — or getting the most return on the dollars it did take in — and continued to balance cost cutting with rebuilding efforts.