Women's clothing retailer Talbots Inc. cut its full-year forecast, casting a shadow over its holiday season and sending its shares down 24 percent.
Talbots, which also plans to cut its prices further, sees full-year earnings in the range of 70 cents to 78 cents per share, compared with an October forecast of 84 cents to 92 cents per share.
"We believe the challenging and promotional environment will continue. To that end, we will stay nimble and have appropriately enhanced our promotional activity to best position ourselves for the remainder of this holiday season," Chief Executive Officer Trudy Sullivan said in a statement.
Talbots could not be reached immediately for further comment.
Talbots, which competes with AnnTaylor Stores Corp. and Chico's FAS Inc., has been trying to turn around its business by offering more fashionable merchandise to female customers in their 50s and 60s, while drawing in younger shoppers.
The company's income from continuing operations was $17 million or 24 cents a share, compared with income from continuing operations of $15.5 million, or 28 cents a share, a year earlier.
Its third-quarter sales fell 3.2 percent and it expects its fourth quarter sales to be flat to down in the low single digit percentage range.
Its shares were down 24 percent at $8.67 per share in premarket trading.
© 2016 Thomson/Reuters. All rights reserved.