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.
  

And The Winning Catalog Cover Is ... J. Jill

Earlier this week, I asked which multichannel retailer sent a catalog without the name brand on the cover.

The winner is J. Jill, who sent the sale catalog on December 23.

J. Jill's new Chief Marketing Officer is Hilary Chasin. I wonder how she perceives this unique marketing strategy?

J. Jill has struggled for the past several years. Since being acquired by Talbots, J. Jill earnings have dragged down Talbots performance. 2007 should be an interesting year for multichannel specialty apparel businesses.

J. Jill, Coldwater Creek, or an Eddie Bauer Catalog?

Today, this sale catalog came in the mail. Go ahead and click on the image. Do you see the company/brand name anywhere on the cover of this catalog?

I asked my wife who's catalog this was. She guessed it correctly after glancing at the cover for about one second. I asked her how she knew which brand published this catalog. Here is her response:

"It was either a J. Jill catalog because of the font, a Coldwater Creek catalog because of the merchandise, or an Eddie Bauer catalog because of the word 'sale'".

Your turn to participate. Is this a J. Jill catalog, a Coldwater Creek catalog, or an Eddie Bauer catalog?

Here's a more important question that you can answer, on your own, or in the comment section of this post. Is it wise for a company to not mention their brand name on the cover of a catalog? Is this brilliant marketing, or completely bone-headed marketing? What do you think?