Talbots Shares Drop 12% on Profit Warning

Talbots Inc. shares had their biggest decline in about seven months after the women’s and children’s clothing retailer said first-quarter earnings would fall unexpectedly.

The shares dropped $4.30, or 12%, to $31.45 on the NYSE.

Profit in the quarter ending May4 will be 53 cents to 55 cents a share, compared with 62 cents a year earlier, Talbots said.

Talbots had expected profit to rise to 63 cents to 65 cents a share. This will be the retailer’s second consecutive decline in quarterly profit.