FORT MYERS, Fla., June 21, 2016 /PRNewswire/ -- Chico's FAS, Inc.
(NYSE: CHS) today announced that it has filed an investor
presentation with the U.S. Securities and Exchange Commission
("SEC") in connection with the Company's 2016 Annual Meeting of
Shareholders to be held on July 21,
2016. Shareholders of record as of May 16, 2016 will be entitled to vote at the
meeting.
The presentation and other materials regarding the Board of
Directors recommendation for the 2016 Annual Meeting of
Shareholders are available on the Investor Relations section of the
Chico's FAS website at www.chicosfas.com.
Highlights of the presentation filed today include:
I. Chico's FAS is Successfully
Executing on a New Strategy for Profitable Growth and Value
Creation
- In less than six months, new CEO and President Shelley Broader developed a new plan, recruited
new team members to drive execution, and launched multiple
initiatives designed to improve the way Chico's FAS operates, with
more to come.
- These initiatives are accelerating progress towards improved
cost efficiency with total announced expected annual savings of
$65 million to $85 million, with
$15 million anticipated in fiscal
2016.
- Chico's FAS is making significant progress towards reaching its
10% operating margin goal.
- In April 2016, Chico's FAS
announced the realignment of Marketing and Digital Commerce
functions, with estimated annualized cost savings of approximately
$14 million.
- In May 2016, Chico's FAS
announced three new initiatives in supply chain efficiency,
non-merchandise expense reduction and marketing spend optimization,
for estimated savings of $50 million to $70
million.
II. Chico's FAS Board has
Proactively Taken Action to Enhance Management, Board and Corporate
Governance to Drive Value
- Chico's FAS is strengthening its management team as the Company
executes the new vision for Chico's FAS, including the appointments
of Shelley Broader as CEO and
President, Susan Lanigan as EVP and
General Counsel and Kristin Oliver
as Chief Human Resources Officer.
- The Company has demonstrated a proactive approach to corporate
governance and shareholder engagement. The Board unanimously
approved a proposal to declassify the Board, such that the entire
Board would stand for election for a one-year term at the 2019
annual meeting. In addition, the Board adopted a formal
policy limiting directors to serve on four public company Boards in
addition to the Chico's FAS Board.
- Chico's FAS is enhancing its Board with individuals who have
the most relevant skills, expertise and track record to support the
Company's success and the execution of its strategic plan needed to
drive shareholder value:
- Shelley Broader brings
more than 25 years of experience leading premier retail businesses,
with 15 years of merchandising experience including as Chief
Merchandising Officer of Walmart Canada, and led the financial and
operational turnaround at Kash n' Karry.
- Bonnie Brooks is the
current Vice Chairman of Hudson's
Bay Company and brings substantial retail, merchandising,
turnaround, and digital and ecommerce skills from some of the
world's leading retailers.
- Janice Fields has made
important contributions to Chico's FAS as Chair of the Corporate
Governance and Nominating Committee. Further, as the former
President of McDonald's USA, LLC,
and a current director of Monsanto Company, she brings unique
marketing, consumer brand and supply chain insights, along with
experience managing multi-unit operations.
- William "Bill" Simon brings extensive supply chain
expertise as the former President and Chief Executive Officer of
Walmart U.S., with a proven track record leading large, complex
global retailers with best-in-class cost structures and premier
consumer brands.
III. Barington's
Misguided Initiatives Would Jeopardize the Company's Plan to Drive
Profitable Growth and Value Creation
- Barington has not suggested any meaningful new proposals –
change was already underway at Chico's FAS.
- Barington's nominees lack the skills and expertise needed today
to support the Company's progress.
- Barington's unsophisticated view of Chico's FAS' business puts
the execution of the Company's strategic plan and the delivery of
real shareholder value at risk.
Support the important progress underway at Chico's FAS.
Chico's FAS shareholders are reminded that their vote is important,
no matter how many or how few shares they own. The Chico's FAS
Board unanimously recommends that shareholders
vote "FOR" all four of its experienced and highly
qualified director candidates – Shelley Broader, Bonnie
Brooks, Janice Fields and Bill Simon.
Shareholders may submit their proxy by mail, phone or Internet
following the instructions on the WHITE proxy card.
Shareholders with questions or who need assistance voting their
shares may call Innisfree M&A Incorporated, the Company's proxy
solicitor, toll-free at (877) 825-8971.
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.
ADDITIONAL INFORMATION
Chico's FAS, its directors and certain of its executive officers
are participants in the solicitation of proxies from Company
shareholders in connection with the matters to be considered at the
Company's 2016 Annual Meeting. The Company has filed a definitive
proxy statement and WHITE proxy card with the U.S. Securities and
Exchange Commission (the "SEC") in connection with any such
solicitation of proxies from Company shareholders. COMPANY
SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ THE DEFINITIVE PROXY
STATEMENT AND ACCOMPANYING WHITE PROXY CARD AS THEY CONTAIN
IMPORTANT INFORMATION. Information regarding the identity of the
participants, and their direct or indirect interests, by security
holdings or otherwise, is set forth in the proxy statement and
other materials filed with the SEC. Shareholders can obtain
any proxy statement, any amendments or supplements to the proxy
statement and other documents filed by the Company with the SEC for
no charge at the SEC's website at www.sec.gov. Copies are
also available at no charge at the Company's website at
www.chicosfas.com, by writing to Chico's FAS at 11215 Metro
Parkway, Fort Myers, FL 33966, or
by calling the Company's proxy solicitor, Innisfree, toll-free at
(877) 825-8971.
Contacts:
Investors:
Jennifer Powers
Vice President - Investor
Relations
Chico's FAS, Inc.
(239) 346-4199
Arthur B. Crozier / Jennifer M. Shotwell / Jonathan E. Salzberger
Innisfree M&A Incorporated
(212) 750-5833
Media:
Barrett Golden / Leigh Parrish / Joseph
Sala
Joele Frank, Wilkinson Brimmer
Katcher
(212) 355-4449
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SOURCE Chico's FAS, Inc.