TALBOTS’ TASTE TEST
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A new management team at Talbots has declared war on a longtime foe: dowdiness.
The Hingham, Mass.-based women’s clothier, which in recent years has gained a reputation for sleep-inducing fashions, yesterday announced a strategic plan to turn itself into a “design-led organization.”
That means doing away with a monotonous trickle of sweaters, skirts and pantsuits, said CEO Trudy Sullivan, who took the helm last summer after stepping down as president of Liz Claiborne.
“Talbots was synonymous with dowdy,” Sullivan told The Post. “We had 42 flavors of the turtleneck. It was kind of repetitive and stuck in ‘last-year-itis.’ ”
Sullivan’s team, which last month added Nike veteran Lori Wagner as its chief merchant, plans to infuse Talbots clothing with more color. Staples like tweed vests and houndstooth jackets will get a more “fun and inspirational” treatment, Sullivan said.
“We don’t do embellished designs,” she said, contrasting Talbots with its rival Chico’s. “But we’ve increased novelty with interesting prints and patterns – something that is the opposite of basic.”
So far, the strategy has made designs on investors. Shares have lost half their value since the summer on fashion flops and the swooning economy, but yesterday they gained 11 percent to $12.01.
The share gain came about despite the retailer’s forecast that it expects to report a loss this year amid a slight decline in comparable sales as it cuts costs and inventory.
The turnaround plan “can work, but it will take time,” said Lazard Capital Markets analyst Todd Slater, who has a “hold” rating on the stock.
The retailer also announced it will add about 35 stores that cater to plus-size women over the next five years, with the potential of building 40 outlet stores through 2011. Talbots added it will rein in growth at its J. Jill chain.
In addition, Talbots said it will “dramatically tighten” its shoe assortment, while offering more accessories.