Chico’s FAS, Inc. Reports Second Quarter Results

For the thirteen weeks ended July 29, 2017 (the “second quarter”), the Company reported net income of $22.7 million, or $0.18 per diluted share, compared to net income of $23.0 million, or $0.17 per diluted share, for the thirteen weeks ended July 30, 2016. Results for the second quarter of 2016 include the impact of restructuring and strategic charges of $10.3 million after-tax, or $0.08 per diluted share.

For the twenty-six weeks ended July 29, 2017, the Company reported net income of $56.3 million, or $0.44 per diluted share, compared to net income of $54.1 million, or $0.41 per diluted share, for the twenty-six weeks ended July 30, 2016. Results for the twenty-six weeks ended July 30, 2016 include the impact of restructuring and strategic charges of $12.5 million after-tax, or $0.09 per diluted share.

Shelley Broader, CEO and President, said, “Second quarter sales were disappointing, and we are taking decisive actions to adjust our assortments and enhance omni-channel capabilities in bellwether categories such as Jackets at Chico’s and Dresses at White House Black Market. While it is early in the third quarter, these key categories are showing encouraging progress.” She continued, “Our leadership team also continues to be keenly focused on driving our strategic priorities to transform Chico’s FAS, Inc. into a more nimble, efficient and innovative retailer that continues to drive strong free cash flow in the long term.”

The Company also announced that Mary van Praag will be starting on September 5, 2017 as the new Soma President. Ms. van Praag most recently served as CEO of Perricone MD. Prior to that, she held senior executive roles at Coty, Inc. and Johnson & Johnson’s beauty division.

Ms. Broader said, “We look forward to leveraging Mary’s global, multi-channel and brand-building expertise, along with her deep understanding of our target customer, to capitalize on Soma’s growth potential.”

For the second quarter, net sales were $578.6 million compared to $635.7 million in last year’s second quarter. This decrease of 9.0% primarily reflects a comparable sales decline of 8.4%, driven by lower average dollar sale and a decline in transaction count.

For the second quarter, gross margin was $209.1 million, or 36.1% of net sales, compared to $240.8 million, or 37.9% of net sales, in last year’s second quarter. This 180 basis point decrease primarily reflects sales deleverage of store occupancy expenses and increased promotional activity to reduce inventory levels.
more detail at:  http://chicosfas.com/investor-relations/press-releases/press-release-details/2017/Chicos-FAS-Inc-Reports-Second-Quarter-Results/default.aspx

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