FORT MYERS, Fla., July 12, 2005 /PRNewswire-FirstCall via COMTEX/ -- Chico's FAS, Inc.
(NYSE: CHS) today announced another step in its plan to explore investments in
companies offering significant future growth opportunities. Chico's said the
use of funds for these purposes is an appropriate corporate strategy given
Chico's current cash position. In this connection Chico's is finalizing a
$10 million purchase of a minority interest in lucy activewear. Chico's will
be entitled to one representative on the lucy board of directors.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030428/CHICOLOGO )
Founded in 1999, lucy activewear is a privately owned, Portland Oregon
based specialty retailer currently operating 18 stores throughout the Western
United States together with an established e-commerce website,
http://www.lucy.com . The proceeds of the financing are intended to be used
by lucy activewear to accelerate its store growth plan. Other major strategic
investors in lucy activewear include Lone Pine Capital, Maveron LLC, Oak
Investment Partners, and Sutter Hill Ventures.
Scott A. Edmonds, President and Chief Executive Officer of Chico's FAS,
Inc., commented, "We are very pleased to have the opportunity to invest in
lucy activewear. We expect to continue to evaluate possible investment
opportunities that fit our strategic and financial objectives. Given the size
of the lucy investment together with the future potential for the company, we
think opportunities of this nature are important strategic uses of our cash.
Like Chico's, lucy shares an over-riding commitment to customer service and
brand building. We are impressed with lucy's management team and with lucy as
an emerging brand in a growing product category."
BB&T Capital Markets acted as financial advisor to Chico's in this
transaction.
The Company is a specialty retailer of private label, sophisticated,
casual-to-dressy clothing, intimates, complementary accessories, and other
non-clothing gift items. The Company operates 705 women's specialty stores,
including stores in 47 states, the District of Columbia, the U.S. Virgin
Islands, and Puerto Rico operating under the Chico's, White House | Black
Market, and Soma by Chico's names. The Company owns 471 Chico's front-line
stores, 27 Chico's outlet stores, 180 White House | Black Market front-line
stores, 5 White House | Black Market outlet stores, and 10 Soma by Chico's
stores; franchisees own and operate 12 Chico's stores.
Certain statements contained herein, including without limitation,
statements addressing the beliefs, plans, objectives, estimates or
expectations of the Company or future results or events constitute "forward-
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. Such forward-looking statements involve known
or unknown risks, including, but not limited to, general economic and business
conditions, and conditions in the specialty retail industry. There can be no
assurance that the actual future results, performance, or achievements
expressed or implied by such forward-looking statements will occur. Users of
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. 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.
For more detailed information, please call (877) 424-4267 to listen to the
Company's monthly sales information and investor relations line
A copy of a slide show addressing the Company's recent financial results and
current plans for expansion is available on the Company's website at
http://www.chicos.com in the investor relations section
Additional investor information on Chico's FAS, Inc. is available free of
charge on the Company's website at http://www.chicos.com in the investor
relations section
SOURCE Chico's FAS, Inc.
Charles J. Kleman, Chief Operating Officer, Chief Financial Officer, +1-239-274-4105
or F. Michael Smith, Vice President, Investor and Community Relations,
+1-239-274-4797, both of Chico's FAS, Inc.
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