FORT MYERS, Fla., May 26,
2016 /PRNewswire/ -- Chico's FAS, Inc. (NYSE: CHS) today announced
its financial results for the fiscal 2016 first quarter and
thirteen weeks ended April 30, 2016.
For the thirteen weeks ended April 30, 2016 ("the first
quarter"), the Company reported net income of $31.1 million, or $0.23 per diluted share, compared to net income
of $32.5 million, or $0.22 per diluted share, for the thirteen weeks
ended May 2, 2015. The Company reported first quarter 2016
adjusted net income of $33.4 million,
or $0.25 adjusted earnings per
diluted share, compared to adjusted net income of $44.5 million, or $0.30 adjusted earnings per diluted share, in
last year's first quarter. The first quarter adjusted results
exclude EPS charges of $0.02 in 2016
and $0.08 in 2015 related to
restructuring and strategic charges and Boston Proper operating
results, as presented in the accompanying GAAP to non-GAAP
reconciliation.
Shelley Broader, CEO and
President, said, "In the first quarter, our loyal customers
continued to be attracted to our brands. Our overall store traffic
trended better than our peer index and when she visited our stores
she was buying, although weak traffic across the industry impacted
our overall sales. We are executing against the Company's
four focus areas announced earlier this year. We are taking
action to improve our profitability, assuring our brands'
leadership in the future and enhancing value for all of our
shareholders. Our cost reduction and operating efficiency
initiatives will position us to be more nimble and responsive to
our customers' needs. These actions are just the beginning as we
execute on our new operating priorities."
Cost Reduction and Operating Efficiency Initiatives
As part of the Company's continued efforts within its four focus
areas - evolving the customer experience, strengthening the
position of each brand, leveraging actionable retail science, and
sharpening financial principles - Chico's FAS today announced new
initiatives to improve its supply chain, enhance its marketing
efforts and leverage non-merchandise procurement. The new
initiatives are expected to reduce complexity and standardize
processes across the organization, thereby improving the Company's
ability to respond in real-time to changes in customer demand for
merchandise.The new initiatives are expected to generate
approximately $50 million to $70
million in annualized savings.
These new cost cutting actions are in addition to the previously
announced realignment of the Company's marketing and digital
commerce functions. That realignment, announced April 25, places the decision makers directly
into the Company's three brands and is expected to generate
$14 million in annualized
savings.
Combined, the marketing realignment and new initiatives are
estimated to generate $65 million to $85
million in annual savings. The Company anticipates
generating $15 million of these costs
savings in fiscal 2016, and expects these initiatives to be fully
implemented during 2017.
Net Sales
For the first quarter, net sales were $643.0 million compared to $697.8 million in last year's first quarter. This
decrease of 7.9% included $25.3
million related to Boston Proper. When excluding Boston
Proper from fiscal 2015, net sales decreased 4.4%, primarily
reflecting a decline in comparable sales of 4.2% and 15 net store
closures. The 4.2% decrease in comparable sales for the first
quarter followed a 0.1% decrease in last year's first quarter, and
reflected reduced average dollar sale and slightly lower
transaction count.
Comparable Sales
|
Thirteen Weeks
Ended
|
|
April 30,
2016
|
|
May 2,
2015
|
Chico's
|
(5.4)
|
%
|
|
(2.3)
|
%
|
White House Black
Market
|
(3.8)
|
%
|
|
1.7
|
%
|
Soma
|
0.5
|
%
|
|
6.5
|
%
|
Total
Company
|
(4.2)
|
%
|
|
(0.1)
|
%
|
Gross Margin
For the first quarter, gross margin was $262.3 million, or 40.8%, compared to
$295.6 million, or 42.4%, in last
year's first quarter. When excluding Boston Proper from fiscal
2015, gross margin decreased 190 basis points in fiscal 2016
compared to gross margin of $287.0
million, or 42.7% last year. This decrease in gross margin
rate primarily reflects increased promotional activity in response
to lower traffic and sales deleverage of store occupancy expenses,
partially offset by reduced incentive compensation.
Selling, General and Administrative Expenses
For the first quarter, selling, general and administrative
expenses ("SG&A") were $208.1
million, or 32.4%, compared to $228.1
million, or 32.7%, in last year's first quarter. When
excluding Boston Proper from fiscal 2015, SG&A decreased
$6.9 million in the first quarter of
fiscal 2016 compared to $215.1
million, or 32.0% last year. The $6.9
million decrease reflects savings in store labor, marketing
expenses and incentive compensation, reflecting a slight decline in
SG&A rate.
Restructuring and Strategic Charges
For the first quarter, the Company recorded pre-tax
restructuring and strategic charges of $3.7
million, primarily consisting of executive transition costs
and consulting fees. On an after-tax basis, the first quarter
impact of these charges was $2.3
million, or $0.02 per diluted
share.
Inventories
At the end of the first quarter of 2016, inventories totaled
$268.0 million compared to
$270.3 million last year. When
excluding Boston Proper, inventories totaled $268.0 million compared to $257.7 million last year, an increase of 4.0%,
primarily reflecting lower than planned sales of spring
merchandise. The majority of our inventory increase was in
go-forward, full-price summer merchandise. For the second quarter,
we are targeting inventory levels to be flat against the prior year
when excluding Boston Proper.
Share Repurchase Program
During the first quarter of fiscal 2016, the Company
repurchased 3.2 million shares for $36.6
million under its $300.0 million
share repurchase program announced in November 2015, with $223.4
million remaining under the program.
Changes in Presentation
Commencing in fiscal 2016, store occupancy expenses and shipping
expenses, historically presented in SG&A, are being presented
in Cost of Goods Sold. The Company believes that the costs
represent direct costs associated with the sale of its merchandise
and these changes better align the Company with its peers and
better reflect how the business operates. Additionally, shipping
revenue, historically presented in SG&A, is being presented in
Net Sales. These adjustments were made retrospectively and all
periods presented conform with this presentation.
ABOUT CHICO'S FAS, INC.
The Company, through its brands – Chico's, White House Black
Market, and Soma is a leading omni-channel specialty retailer of
women's private branded, sophisticated, casual-to-dressy clothing,
intimates, complementary accessories, and other non-clothing
items.
As of April 30, 2016, the Company operated 1,517 stores in
the US and Canada and sold
merchandise through franchise locations in Mexico. The Company's merchandise is also
available at www.chicos.com, www.whbm.com, and www.soma.com. For
more detailed information on Chico's FAS, Inc., please go to our
corporate website at www.chicosfas.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
Certain statements contained herein may contain certain
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which reflect our
current views with respect to certain events that could have an
effect on our future financial performance, including but without
limitation, statements regarding our plans, objectives, and future
success of our store concepts, the implementation of our previously
announced restructuring program, and implementation of our program
to increase the sales volume and profitability of our existing
brands through four previously announced focus areas. These
statements may address items such as future sales, gross margin
expectations, SG&A expectations, operating margin expectations,
planned store openings, closings and expansions, future comparable
sales, inventory levels, and future cash needs. These statements
relate to expectations concerning matters that are not historical
fact and may include the words or phrases such as "expects,"
"believes," "anticipates," "plans," "estimates,"
"approximately," "our planning assumptions," "future outlook," and
similar expressions. Except for historical information, matters
discussed in such oral and written statements are forward-looking
statements. These forward-looking statements are based largely on
information currently available to our management and on our
current expectations, assumptions, plans, estimates, judgments and
projections about our business and our industry, and are subject to
various risks and uncertainties that could cause actual results to
differ materially from historical results or those currently
anticipated. Although we believe our expectations are based on
reasonable estimates and assumptions, they are not guarantees of
performance and there are a number of known and unknown risks,
uncertainties, contingencies, and other factors (many of which are
outside our control) that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. Accordingly, there is no assurance that our
expectations will, in fact, occur or that our estimates or
assumptions will be correct, and we caution investors and all
others not to place undue reliance on such forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, general economic and
business conditions, conditions in the specialty retail industry,
the availability of quality store sites, the ability to
successfully execute our business strategies, the ability to
achieve the results of our restructuring program, the ability to
achieve the results of our four focus areas, the integration of our
new management team, and those described in Item 1A, "Risk Factors"
and in the "Forward-Looking Statements" disclosure in Item 7.
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" of our Form 10-K. There can be no assurance
that the actual future results, performance, or achievements
expressed or implied by such forward-looking statements will occur.
Investors using forward-looking statements are encouraged to review
the Company's latest annual report on Form 10-K, its filings on
Form 10-Q, management's discussion and analysis in the Company's
latest annual report to stockholders, the Company's filings on Form
8-K, and other federal securities law filings for a description of
other important factors that may affect the Company's business,
results of operations and financial condition. All written or oral
forward-looking statements that are made or attributable to us are
expressly qualified in their entirety by this cautionary notice.
The Company does not undertake to publicly update or revise its
forward looking statements even if experience or future changes
make it clear that projected results expressed or implied in such
statements will not be realized.
(Financial Tables Follow)
Executive Contact:
Jennifer
Powers
Vice President – Investor Relations
Chico's FAS, Inc.
(239) 346-4199
Chico's FAS, Inc.
and Subsidiaries
Condensed
Consolidated Statements of Income
(Unaudited)
(in thousands,
except per share amounts)
|
|
|
Thirteen Weeks
Ended
|
|
April 30,
2016
|
|
May 2,
2015
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
Net
sales:
|
|
|
|
|
|
|
|
Chico's
|
$
|
348,704
|
|
|
54.2
|
|
|
$
|
369,859
|
|
|
53.0
|
|
White House Black
Market
|
214,993
|
|
|
33.5
|
|
|
225,442
|
|
|
32.3
|
|
Soma
|
79,280
|
|
|
12.3
|
|
|
77,167
|
|
|
11.1
|
|
Boston
Proper
|
—
|
|
|
0.0
|
|
|
25,298
|
|
|
3.6
|
|
Total net
sales
|
642,977
|
|
|
100.0
|
|
|
697,766
|
|
|
100.0
|
|
Cost of goods
sold
|
380,642
|
|
|
59.2
|
|
|
402,148
|
|
|
57.6
|
|
Gross
margin
|
262,335
|
|
|
40.8
|
|
|
295,618
|
|
|
42.4
|
|
Selling, general and
administrative expenses
|
208,141
|
|
|
32.4
|
|
|
228,065
|
|
|
32.7
|
|
Restructuring and
strategic charges
|
3,651
|
|
|
0.5
|
|
|
14,875
|
|
|
2.1
|
|
Income from
operations
|
50,543
|
|
|
7.9
|
|
|
52,678
|
|
|
7.6
|
|
Interest expense,
net
|
(459)
|
|
|
(0.1)
|
|
|
(453)
|
|
|
(0.1)
|
|
Income before
income taxes
|
50,084
|
|
|
7.8
|
|
|
52,225
|
|
|
7.5
|
|
Income tax
provision
|
19,000
|
|
|
3.0
|
|
|
19,700
|
|
|
2.8
|
|
Net
income
|
$
|
31,084
|
|
|
4.8
|
|
|
$
|
32,525
|
|
|
4.7
|
|
Per share
data:
|
|
|
|
|
|
|
|
Net income per common
share-basic
|
$
|
0.23
|
|
|
|
|
$
|
0.22
|
|
|
|
Net income per common
and common equivalent share–diluted
|
$
|
0.23
|
|
|
|
|
$
|
0.22
|
|
|
|
Weighted average
common shares outstanding–basic
|
131,594
|
|
|
|
|
143,378
|
|
|
|
Weighted average
common and common equivalent shares outstanding–diluted
|
131,689
|
|
|
|
|
143,771
|
|
|
|
Dividends declared
per share
|
$
|
0.160
|
|
|
|
|
$
|
0.155
|
|
|
|
|
|
|
|
|
|
|
|
Chico's FAS, Inc.
and Subsidiaries
Condensed
Consolidated Balance Sheets
(Unaudited)
(in
thousands)
|
|
|
April 30,
2016
|
|
January 30,
2016
|
|
May 2,
2015
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
56,502
|
|
|
$
|
89,951
|
|
|
$
|
97,651
|
|
Marketable
securities, at fair value
|
50,479
|
|
|
50,194
|
|
|
48,447
|
|
Inventories
|
267,988
|
|
|
233,834
|
|
|
270,313
|
|
Prepaid expenses and
other current assets
|
48,105
|
|
|
45,660
|
|
|
48,812
|
|
Income taxes
receivable
|
10,928
|
|
|
29,157
|
|
|
447
|
|
Assets held for
sale
|
16,525
|
|
|
16,525
|
|
|
24,042
|
|
Total Current
Assets
|
450,527
|
|
|
465,321
|
|
|
489,712
|
|
Property and
Equipment, net
|
535,470
|
|
|
550,953
|
|
|
584,616
|
|
Other
Assets:
|
|
|
|
|
|
Goodwill
|
96,774
|
|
|
96,774
|
|
|
145,627
|
|
Other intangible
assets, net
|
38,930
|
|
|
38,930
|
|
|
108,449
|
|
Other assets,
net
|
14,415
|
|
|
14,074
|
|
|
17,953
|
|
Total Other
Assets
|
150,119
|
|
|
149,778
|
|
|
272,029
|
|
|
$
|
1,136,116
|
|
|
$
|
1,166,052
|
|
|
$
|
1,346,357
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
144,767
|
|
|
$
|
129,343
|
|
|
$
|
147,323
|
|
Current
debt
|
10,000
|
|
|
10,000
|
|
|
34,000
|
|
Other current and
deferred liabilities
|
142,091
|
|
|
158,788
|
|
|
171,161
|
|
Total Current
Liabilities
|
296,858
|
|
|
298,131
|
|
|
352,484
|
|
Noncurrent
Liabilities:
|
|
|
|
|
|
Long-term
debt
|
79,735
|
|
|
82,219
|
|
|
90,000
|
|
Deferred
liabilities
|
129,306
|
|
|
130,743
|
|
|
142,185
|
|
Deferred
taxes
|
16,740
|
|
|
15,171
|
|
|
49,273
|
|
Total Noncurrent
Liabilities
|
225,781
|
|
|
228,133
|
|
|
281,458
|
|
Stockholders'
Equity:
|
|
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
|
—
|
|
Common
stock
|
1,336
|
|
|
1,355
|
|
|
1,434
|
|
Additional paid-in
capital
|
436,581
|
|
|
435,881
|
|
|
353,523
|
|
Treasury stock, at
cost
|
(326,418)
|
|
|
(289,813)
|
|
|
(187,393)
|
|
Retained
earnings
|
501,936
|
|
|
492,325
|
|
|
544,511
|
|
Accumulated other
comprehensive income
|
42
|
|
|
40
|
|
|
340
|
|
Total
Stockholders' Equity
|
613,477
|
|
|
639,788
|
|
|
712,415
|
|
|
$
|
1,136,116
|
|
|
$
|
1,166,052
|
|
|
$
|
1,346,357
|
|
Chico's FAS, Inc.
and Subsidiaries
Condensed
Consolidated Cash Flow Statements
(Unaudited)
(in
thousands)
|
|
|
Thirteen Weeks
Ended
|
|
April 30,
2016
|
|
May 2,
2015
|
Cash Flows From
Operating Activities:
|
|
|
|
Net income
|
$
|
31,084
|
|
|
$
|
32,525
|
|
Adjustments to
reconcile net income to net cash provided by operating activities
—
|
|
|
|
Depreciation and
amortization
|
27,957
|
|
|
30,743
|
|
Loss on disposal and
impairment of property and equipment
|
597
|
|
|
6,277
|
|
Deferred tax expense
(benefit)
|
307
|
|
|
(425)
|
|
Stock-based
compensation expense
|
5,546
|
|
|
7,631
|
|
Excess tax benefit
from stock-based compensation
|
(96)
|
|
|
(2,012)
|
|
Deferred rent and
lease credits
|
(5,007)
|
|
|
(4,283)
|
|
Changes in assets and
liabilities:
|
|
|
|
Inventories
|
(34,154)
|
|
|
(35,154)
|
|
Prepaid expenses and
other assets
|
14,617
|
|
|
(3,468)
|
|
Accounts
payable
|
4,814
|
|
|
(8,979)
|
|
Accrued and other
liabilities
|
(13,029)
|
|
|
18,884
|
|
Net cash provided by
operating activities
|
32,636
|
|
|
41,739
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Purchases of
marketable securities
|
(11,403)
|
|
|
(18,252)
|
|
Proceeds from sale of
marketable securities
|
11,156
|
|
|
96,351
|
|
Purchases of property
and equipment, net
|
(13,056)
|
|
|
(19,839)
|
|
Net cash (used in)
provided by investing activities
|
(13,303)
|
|
|
58,260
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Proceeds from
borrowings
|
—
|
|
|
124,000
|
|
Payments on
borrowings
|
(2,500)
|
|
|
—
|
|
Proceeds from
issuance of common stock
|
1,177
|
|
|
8,025
|
|
Excess tax benefit
from stock-based compensation
|
96
|
|
|
2,012
|
|
Dividends
paid
|
(10,864)
|
|
|
(11,076)
|
|
Repurchase of common
stock
|
(40,660)
|
|
|
(258,450)
|
|
Net cash used in
financing activities
|
(52,751)
|
|
|
(135,489)
|
|
Effects of exchange
rate changes on cash and cash equivalents
|
(31)
|
|
|
(210)
|
|
Net decrease in cash
and cash equivalents
|
(33,449)
|
|
|
(35,700)
|
|
Cash and Cash
Equivalents, Beginning of period
|
89,951
|
|
|
133,351
|
|
Cash and Cash
Equivalents, End of period
|
$
|
56,502
|
|
|
$
|
97,651
|
|
Supplemental Detail on Earnings Per Share Calculation
In accordance with accounting guidance, unvested share-based
payment awards that include non-forfeitable rights to dividends,
whether paid or unpaid, are considered participating
securities. As a result, such awards are required to be
included in the calculation of earnings per common share pursuant
to the "two-class" method. For the Company, participating
securities are composed entirely of unvested restricted stock
awards and performance-based restricted stock units ("PSUs") that
have met their relevant performance criteria.
Earnings per share is determined using the two-class method when
it is more dilutive than the treasury stock method. Basic
earnings per share is computed by dividing net income available to
common stockholders by the weighted-average number of common shares
outstanding during the period. Diluted earnings per share reflects
the dilutive effect of potential common shares from
non-participating securities such as stock options and PSUs. For
the thirteen weeks ended April 30, 2016 and May 2, 2015,
potential common shares were excluded from the computation of
diluted EPS to the extent they were antidilutive.
The following unaudited table sets forth the computation of
basic and diluted earnings per share shown on the face of the
accompanying condensed consolidated statements of operations (in
thousands, except per share amounts):
|
Thirteen Weeks
Ended
|
|
April 30,
2016
|
|
May 2,
2015
|
|
|
|
|
Numerator
|
|
|
|
Net income
|
$
|
31,084
|
|
|
$
|
32,525
|
|
Net income and
dividends declared allocated to participating securities
|
(646)
|
|
|
(786)
|
|
Net income available
to common shareholders
|
$
|
30,438
|
|
|
$
|
31,739
|
|
|
|
|
|
Denominator
|
|
|
|
Weighted average
common shares outstanding – basic
|
131,594
|
|
|
143,378
|
|
Dilutive effect of
non-participating securities
|
95
|
|
|
393
|
|
Weighted average
common and common equivalent shares outstanding –
diluted
|
131,689
|
|
|
143,771
|
|
|
|
|
|
Net income per
common share*
|
|
|
|
Basic
|
$
|
0.23
|
|
|
$
|
0.22
|
|
Diluted
|
$
|
0.23
|
|
|
$
|
0.22
|
|
*Due to the differences between quarterly and year-to-date
weighted average share counts and the effect of quarterly rounding
to the nearest cent per diluted share, the year-to-date calculation
of generally accepted accounting principles ("GAAP") and non-GAAP
diluted EPS may not equal the sum of the quarters.
SEC Regulation G - The Company reports its consolidated
financial results in accordance with GAAP. However, to
supplement these consolidated financial results, management
believes that certain non-GAAP results, which exclude certain
charges and results from non-continuing operations, may provide a
more meaningful measure on which to compare the Company's results
of operations between periods. The Company believes these
non-GAAP results provide useful information to both management and
investors by excluding certain expenses that impact the
comparability of the results.
A reconciliation of net income and earnings per diluted share on
a GAAP basis to net income and earnings per diluted share on a
non-GAAP adjusted basis is presented in the table below:
Chico's FAS, Inc.
and Subsidiaries
|
GAAP to Non-GAAP
Reconciliation of Net Income and Diluted EPS
|
(Unaudited)
|
(in thousands, except
per share amounts)
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
April 30,
2016
|
|
May 2,
2015
|
Net
income:
|
|
|
|
|
GAAP
basis
|
|
$
|
31,084
|
|
|
$
|
32,525
|
|
Restructuring and
strategic charges
|
|
2,266
|
|
|
9,264
|
|
Boston Proper net
loss
|
|
—
|
|
|
2,733
|
|
Non-GAAP adjusted
basis
|
|
$
|
33,350
|
|
|
$
|
44,522
|
|
|
|
|
|
|
Net income per
diluted share:
|
|
|
|
|
GAAP
basis
|
|
$
|
0.23
|
|
|
$
|
0.22
|
|
Restructuring and
strategic charges
|
|
0.02
|
|
|
0.06
|
|
Boston Proper net
loss
|
|
0.00
|
|
|
0.02
|
|
Non-GAAP adjusted
basis
|
|
$
|
0.25
|
|
|
$
|
0.30
|
|
(1) All adjustments to net income and net income per
diluted share are presented net of tax.
SEC Regulation G - The Company reports its consolidated
financial results in accordance with GAAP. However, to supplement
these consolidated financial results, management believes that
certain non-GAAP results, which exclude results from non-continuing
operations, may provide a more meaningful measure on which to
compare the Company's results of operations between periods.
The tables below present a reconciliation of selected
consolidated financial data on a GAAP basis to selected
consolidated financial data on a non-GAAP adjusted basis,
reflecting certain adjustments as identified in the footnotes to
the table and excluding Boston Proper:
Chico's FAS, Inc.
and Subsidiaries
|
Fiscal 2015
Reconciliation of Reported to Adjusted Selected Non-GAAP
Consolidated Financial Data
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
As
Reported
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
May 2,
2015
|
|
Amount
|
|
% of
Sales
|
Net Sales
|
$
|
693,339
|
|
|
100.0
|
|
Cost of goods
sold
|
297,569
|
|
|
42.9
|
|
Gross
margin
|
395,770
|
|
|
57.1
|
|
Selling, general and
administrative expenses
|
328,217
|
|
|
47.3
|
|
Subtotal
|
$
|
67,553
|
|
|
9.8
|
|
|
Boston
Proper
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
May 2,
2015
|
|
Amount
|
|
% of
Sales
|
Net Sales
|
$
|
23,780
|
|
|
100.0
|
|
Cost of goods
sold
|
13,301
|
|
|
55.9
|
|
Gross
margin
|
10,479
|
|
|
44.1
|
|
Selling, general and
administrative expenses
|
14,866
|
|
|
62.5
|
|
Subtotal
|
$
|
(4,387)
|
|
|
(18.4)
|
|
|
Adjustments,
excluding Boston Proper
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
May 2,
2015
|
|
Amount
|
|
% of
Sales
|
Net
Sales(1)
|
$
|
2,909
|
|
|
0.4
|
|
Store occupancy
expense(2)
|
93,286
|
|
|
13.4
|
|
Shipping
expense(3)
|
7,919
|
|
|
1.1
|
|
Cost of goods
sold
|
101,205
|
|
|
14.5
|
|
Gross
margin
|
(98,296)
|
|
|
(14.1)
|
|
Selling, general and
administrative expenses
|
(98,296)
|
|
|
(14.1)
|
|
Subtotal
|
$
|
—
|
|
|
—
|
|
|
As Adjusted,
Non-GAAP
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
May 2,
2015
|
|
Amount
|
|
% of
Sales
|
Net Sales
|
$
|
672,468
|
|
|
100.0
|
|
Cost of goods
sold
|
385,473
|
|
|
57.3
|
|
Gross
margin
|
286,995
|
|
|
42.7
|
|
Selling, general and
administrative expenses
|
215,055
|
|
|
32.0
|
|
Subtotal
|
$
|
71,940
|
|
|
10.7
|
|
|
|
|
|
(1) Adjustments to net sales represent the correction
of an immaterial error in the classification of shipping revenue,
which was previously classified within SG&A.
(2) Adjustments to store occupancy expense represent
the reclassification of store occupancy expenses, which were
previously classified within SG&A.
(3) Adjustments to shipping expense represent a
change in accounting policy to present shipping expenses within
cost of goods sold, which were previously presented within
SG&A.
Chico's FAS, Inc.
and Subsidiaries
|
Store Count and
Square Footage
|
Thirteen Weeks Ended
April 30, 2016
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
January 30,
2016
|
|
New Stores
|
|
Closures
|
|
April 30,
2016
|
|
|
Store
count:
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
604
|
|
|
1
|
|
|
(5)
|
|
|
600
|
|
|
|
Chico's
outlets
|
117
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|
|
Chico's
Canada
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|
WHBM frontline
boutiques
|
429
|
|
|
2
|
|
|
(3)
|
|
|
428
|
|
|
|
WHBM
outlets
|
71
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
|
WHBM
Canada
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
|
Soma frontline
boutiques
|
269
|
|
|
3
|
|
|
—
|
|
|
272
|
|
|
|
Soma
outlets
|
18
|
|
|
1
|
|
|
—
|
|
|
19
|
|
|
|
Total Chico's FAS,
Inc.
|
1,518
|
|
|
7
|
|
|
(8)
|
|
|
1,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 30,
2016
|
|
New Stores
|
|
Closures
|
|
Other changes in
SSF
|
|
April 30,
2016
|
Net selling square
footage (SSF):
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
1,652,991
|
|
|
2,773
|
|
|
(15,910)
|
|
|
(158)
|
|
|
1,639,696
|
|
Chico's
outlets
|
293,646
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
293,646
|
|
Chico's
Canada
|
9,695
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,695
|
|
WHBM frontline
boutiques
|
991,164
|
|
|
4,691
|
|
|
(6,612)
|
|
|
811
|
|
|
990,054
|
|
WHBM
outlets
|
148,457
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,457
|
|
WHBM
Canada
|
14,891
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,891
|
|
Soma frontline
boutiques
|
507,805
|
|
|
5,558
|
|
|
—
|
|
|
1,155
|
|
|
514,518
|
|
Soma
outlets
|
33,792
|
|
|
1,845
|
|
|
—
|
|
|
—
|
|
|
35,637
|
|
Total Chico's FAS,
Inc.
|
3,652,441
|
|
|
14,867
|
|
|
(22,522)
|
|
|
1,808
|
|
|
3,646,594
|
|
As of April 30, 2016 the Company also sold merchandise
through 77 international franchise locations, comprised of 6
Chico's stand-alone boutiques, 40 Chico's shop-in-shops, and 31
Soma shop-in-shops.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/chicos-fas-inc-reports-first-quarter-results-300275265.html
SOURCE Chico's FAS, Inc.