Annual Report Update: Talbots

A few comments from their Annual Report:

• New Stores: "The customer database compiled through the Company's catalog operations provides important demographic information and serves as an integral part of the Company's expansion strategy by helping to identify markets with the potential to support a new store. Although the addition of stores in areas where the catalog has been successful has resulted in slightly lower catalog sales in these areas, the lower catalog sales have been more than offset by the significantly higher sales generated in these areas by the opening of new stores".

• 78% of Talbots merchandise and 88% of J. Jill merchandise is sourced via offshore vendors. 33% of Talbots merchandise is sourced in Hong Kong.

• 2006 Talbots circulation = 25 in-home dates, 48 million catalogs circulated.

• Direct-to-Consumer sales across brands represented 17% of total Company sales --- the online channel comprised 49% of Direct-to-Consumer sales, 47% at Talbots (42% LY), 54% at J. Jill since the acquisition date.
  

• Talbots comps increased just 1.3%, J. Jill comps decreased 4.4% since the date of acquisition by Talbots.