Full Year 2014 Financial Highlights: Billings grew 16%, or $222 million, to $1,602 million compared with $1,380 million in the full year 2013. Net sales were $1,372 million compared with $1,379 million in 2013, while net deferred revenue increased $230 million in 2014, driven by higher billings and strong digital sales. Adjusted cash EBITDA, which accounts for the change in deferred revenue, increased $168 million, or 51%, to $495 million in 2014 compared to $327 million in 2013. Adjusted EBITDA was $265 million for the full year 2014 compared with $325 million in the prior year. Net loss was $111 million for the full year 2014 and 2013.
The board of Chico’s FAS has unanimously rejected an unsolicited buyout proposal from Sycamore Partners.
The struggling women’s apparel retailer received an offer from Sycamore Partners on May 10 to acquire the retailer for $3.50 per share in cash, about $407.8 million. On Thursday, May 16, Chico’s said that, following a review, it had determined that Sycamore’s proposal substantially undervalues the company and is not in the best interests of its shareholders.
“Chico’s FAS benefits from a strong operating and financial foundation, including a portfolio of differentiated brands, loyal customers and robust omnichannel capabilities, stated David Walker, board chair. “Sycamore’s interest underscores the upside opportunities that these competitive advantages create, but the prices Sycamore has proposed are inadequate and fail to recognize the full value of the company and its future prospects.”