Talbots Revises First Quarter Outlook

Business Wire, May 3, 2007

Talbots Brand April Sales Significantly Weaker Than Expected

HINGHAM, Mass. -- The Talbots, Inc. (NYSE: TLB) today announced that earnings per share on a reported basis for the first quarter ending May 5, 2007 are expected to be in the range of $0.07 to $0.11, compared to its previously announced expectation of $0.36 - $0.43 earnings per share, primarily due to significantly weaker than expected Talbots brand April sales. The Talbots, Inc. total company comparable store sales are expected to be negative low to mid single digits for the first quarter, compared to its previously announced expectation of positive low single digits. The total company's revised first quarter outlook is currently as follows:

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Arnold B. Zetcher, Talbots Chairman, President and Chief Executive Officer, commented, "While we experienced some fluctuation in our sales trends in the first quarter, primarily at the core Talbots brand, we were on track to achieve our previously announced total company earnings per share expectations as we entered April."

"In March, for the Talbots brand, we had very strong regular-price selling across all channels, posting high double-digit, regular-price comps in weeks two through four. These strong sales trends were offset by the softness in our mid-season sale event, which began on March 22nd and featured the same merchandise that did not perform well at regular-price in February. We took deeper than planned discounts in order to move our clearance merchandise."

"Although our Talbots brand sale event was softer than anticipated, we entered April with optimism because of the strength of March's regular-price selling and our marketing programs, which included a broad-based best customer event. However, beginning on April 4th, we started seeing a dramatic decline in our regular-price sales trends, which then continued throughout the month. We believe this was driven by a combination of factors, including adverse weather in the first few weeks of the period, the impact of the Easter shift and a much weaker than anticipated customer response primarily to our casual merchandise. At this time, due to our April performance we anticipate that Talbots brand first quarter comparable store sales will be in the negative low to mid single digit range, versus our previous expectation for positive low single digits."

"For our J. Jill brand, we currently anticipate that first quarter comparable store sales will be approximately flat with last year, below our previous expectations of positive low-single digits. Our March and April comps are positive, partially reflecting a favorable customer response to some of the product adjustments our J. Jill merchandising team has been able to make. This gives us confidence that we are moving in the right direction, particularly in color and design."

"We still have a great deal of work ahead of us, but we are making progress to improve the performance of our J. Jill brand. We look forward to presenting a broader selection of apparel developed by our new merchandising team beginning in the second quarter and are hopeful for stronger selling trends across all channels in the J. Jill brand."

"For the Talbots brand, we have strongly enhanced our marketing program for the remainder of the spring season and have put a number of actions in place to help drive increased customer traffic and sales. Specifically, we have added a Mother's Day Sweepstakes event, a special tee-shirt promotion that will run in May, and double points for our Talbots Charge Classic Awards customers throughout the month of June, among others. We are hopeful that these initiatives will help build healthier momentum in our business."

"As we look ahead, however, we remain cautious, particularly given our April sales trends. We expect to provide additional information regarding our revised outlook for full year 2007, when we report first quarter earnings results on May 23rd."

The Talbots, Inc. is a leading international specialty retailer and cataloger of women's, children's and men's apparel, shoes and accessories. The Company currently operates a total of 1,378 stores in 47 states, the District of Columbia, Canada and the U.K., with 1,131 stores under the Talbots brand name and 247 stores under the J. Jill brand name. Both brands target the age 35 plus customer population. Talbots brand on-line shopping site is located at www.talbots.com and the J. Jill brand on-line shopping site is located at www.jjill.com.

The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect," "look," "believe," "anticipate," "outlook," "will," "would," "would yield," or similar statements or variations of such terms. All of the "outlook" information (including future revenues, future comparable sales, future earnings, future EPS, and other future financial performance or operating measures) constitutes forward-looking information.