UPDATE 1-Talbots sees quarterly loss, closing 100 stores

(Recasts; adds details forecasts, planned store closures, sales results, stock activity)

LOS ANGELES, Feb 6 (Reuters) - Talbots Inc (TLB.N) on Wednesday said it expects a fiscal fourth-quarter loss of 23 cents to 28 cents per share, excluding items, after same-store sales fell 6 percent.

The retailer, which operates Talbots and J. Jill brands, also said it plans to cut spending, open fewer new stores and close 100 underperforming stores this fiscal year.

"Unfortunately, worsening economic conditions in the fourth quarter exacerbated problems that we had already recognized and have been working to address, and impacted our near-term performance," Talbots Chief Executive Trudy Sullivan said in a statement.

The company also said it expects to report a fourth-quarter net loss of $2.10 to $2.15 per share.

The new net loss forecast includes $1.87 per share in charges from the write-down of assets, store closure charges, acquisition and financing costs, executive compensation charges and other items.

The Hingham, Massachusetts, company said it plans to close about 100 underperforming stores in fiscal 2008, including its previously announced plan to shutter 78 Talbots Kids and Mens stores.

Sales during the 13-week quarter fell to $587 million, versus reported sales of $638 million for the 14 weeks ended February 3, 2007.

During the quarter, Talbots sales fell more than 10.4 percent to $388 million and J. Jill's sales were down 5.5 percent. Catalog and Internet sales were $113 million, down from $114 million a year ago.

Same-store sales at the Talbots and J. Jill brands declined 6 percent and 6.3 percent, respectively, driven by an especially weak November and December.

The company said overall comparable store sales in January were up in the low single digits, as it booked increases in sales from both full-priced and reduced-price items.

Talbots is cutting its print and television advertising this year. It plans to spend about half of that saved money to step up its catalog and Internet marketing efforts.

It has also slashed fiscal 2008 store expansions to 46, compared with 75 new store openings in fiscal 2007, and intends to reduce its cost structure by a minimum of $100 million by the end of fiscal 2009.

Shares in Talbots closed up 3.9 percent, or 31 cents, to $8.19 on the New York Stock Exchange, but have lost two-thirds of its value from a year ago. (Reporting by Lisa Baertlein; editing by Gunna Dickson)