Michael Smaldone

Hingham, Mass. — Talbots posted a bigger-than-expected second-quarter loss on Wednesday, largely due to increased markdowns. The retailer also said that chief creative officer Michael Smaldone has departed the company, effective immediately. Talbots reported a net loss of $37.3 million for the period ended July 30, compared with a profit of $941,000 a year earlier. Revenue fell 10% to $271.1 million from $300.7 million. Same-stores sales fell 10.4%. Talbots said its sales and traffic so far in the third quarter are down and anticipates its high levels of promotions and markdowns will continue. The company’s decision to part ways

Talbots took a series of steps, including firing its creative head, to fix its long-running merchandise problems, sending the women's clothes retailer's shares up as much as 12 percent. The company, whose sales have fallen steadily for the past five years, fired Chief Creative Officer Michael Smaldone to "bring in new creative leadership."

More Blogs