Talbots Inc., the women's apparel retailer, revealed that it sees a smaller sales decline for the fourth quarter as full-price selling increased its top line, and also amended its merger agreement with BPW Acquisition Corp., a special purpose acquisition company.

It now expects a sales drop for the quarter ended Jan. 30 of 4%, compared with its prior view for a reduction of 6% to 8%. Comparable-store sales are reported down by 7%, with direct-marketing sales up 11%. The period's results are slated for release on April 13.

In addition, the direct marketing sales are hoped to rise by 11 percent over last year, a result of better demand and lower return rates.

The retail segment has been the victim of the hardest hit reflected by the recession, and Talbots, which sells traditionally styled clothes to women 25 and older, was sputtering even before the slowdown set in.

Talbots, possessing 580 stores, enters a list of retailers who so far have raised expectations for the quarter, which includes the holiday shopping season.

Shares of Talbots were up 4 percent at $11.65 Wednesday in pre-market trading. They had closed at $11.18 Tuesday on the New York Stock Exchange.