Talbots Inc, which is into the business of women retailing said that it has seen a 2 per cent increase in its net profit calculated on a quarterly basis. The result is better-than-expectations of technical experts.

Although small, the figure is substantial considering that Talbots has been struggling with its financials till now and has seen constantly declining sales. It was debt-laden.

To be able to make a turnaround, it revamped all its merchandise and targeted the customers that were in their 30's and 40's. Tighter control on inventory and increased margins has also contributed to the figures.

Also, in the month of April, the company finished a finance deal because of which its ties with Aeon Co Ltd were cut. Aeon is the second largest retailer in Japan and has controlling stake in Talbots.

As a result of this step, liquidity was boosted and the stores could make a turnaround.

Meanwhile, for the quarter ending May 1, Talbots was able to reduce its debt to $94.1 million.