Following a period of financial hardship, multichannel retailer Talbots said this week that is has begun reinvesting in the business, including increasing catalog circulation. Talbots faced a series of setbacks beginning in 2008, including financing difficulties, poor sales, staff cutbacks and a reduction in catalog circulation. During a conference call this week with analysts to discuss the company’s second quarter financial results, however, Talbots COO Mike Scarpa insisted the retailer is on the road to recovery. “We have made steady progress in our financial results of the last 12 months driving significant improvement in operating income and restoring a strong balance sheet,” said Scarpa. “We believe the second half of this year is a critical time to begin to reinvest in the business to drive sustainable growth and profitability over the long term,” he continued. Part of that reinvestment includes renewed efforts around building brand awareness, said Trudy Sullivan, president and CEO at Talbots, during the call. “In the second quarter, our marketing included increased catalog circulation aimed at customer reactivation and increased prospecting via the Web to capture new customers,” said Sullivan. New customer acquisitions have increased in the double digit range compared to last year, reactivated buyers are returning at a greater rate and existing customers are buying more, she continued. Sullivan also pointed to a new brand advertising campaign that includes print ads in the September issues of MORE, Vogue, InStyle, Elle and Oprah. In addition, the retailer is investing in regional advertising in markets with recently refreshed stores. To support the branding effort, Talbots will continue to drop direct mail in the third quarter, including catalogs. There will be two September catalog mailings this year compared with one last year to reflect a new merchandising strategy. Talbots is also upping its commitment to online search and banner advertising. In addition, the retailer will partner with fashion and lifestyle experts for local events. For the second quarter ended July 31, Talbots sales decreased 1.3% for a total of $300.7 million while comparable store sales decreased 1.4% during the same period. Second quarter direct marketing sales, which include catalog and Internet, where approximately flat compared to last year, totaling $49.9 million. Year-to-date, direct marketing sales increased 13.5% compared to last year’s first half. The retailer reported second quarter income from continuing operations totaling $0.5 million or $0.01 per share, compared to last year's loss from continuing operations of $20.5 million, or $0.38 per share.