FORT MYERS, Fla., Nov. 8 /PRNewswire-FirstCall/ -- Chico's FAS, Inc.
(NYSE: CHS) today reported that its sales results for the four-week period
ended November 3, 2007 decreased 4.1% to $121.2 million from $126.4 million
reported for the four-week period ended October 28, 2006. Comparable store
sales for the Company-owned stores decreased 10.6% for the four-week period
ended November 3, 2007 compared to the same four-week period last year ending
November 4, 2006.
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Total sales for the thirteen-week period ended November 3, 2007 increased
3.4% to $416 million from $402 million reported for the thirteen-week period
ended October 28, 2006. Comparable store sales for the Company-owned stores
decreased 9.3% for the thirteen-week period ended November 3, 2007 compared to
the same thirteen-week period last year ending November 4, 2006.
For the thirty-nine weeks ended November 3, 2007, total sales increased
9.1% to $1.31 billion from $1.20 billion reported for the thirty-nine week
period ended October 28, 2006. Comparable store sales for the Company-owned
stores decreased 5.5% for the thirty-nine week period ended November 3, 2007
compared to the thirty-nine week period last year ending November 4, 2006.
Additional details on October, quarter-to-date and year-to-date sales are
as follows:
October Sales Percent Increase/(Decrease)
(dollars in millions) Comparable Store Sales
Fiscal 2007 Fiscal 2006 Total Sales Fiscal Comparable
Basis (a) Basis (b)
$121.2 $126.4 (4.1)% (15.5)% (10.6)%
Quarter-to-Date Sales Percent Increase/(Decrease)
(dollars in millions) Comparable Store Sales
Fiscal 2007 Fiscal 2006 Total Sales Fiscal Comparable
Basis (a) Basis (b)
$416 $402 3.4 % (9.4)% (9.3)%
Year-to-Date Sales Percent Increase/(Decrease)
(dollars in billions) Comparable Store Sales
Fiscal 2007 Fiscal 2006 Total Sales Fiscal Comparable
Basis (a) Basis (b)
$1.31 $1.20 9.1 % (5.3)% (5.5)%
(a) "Fiscal Basis" compares fiscal 2007 to fiscal 2006. (b) "Comparable
Basis" compares fiscal 2007 to the identical weeks last year. Each
period includes the same number of days.
Scott A. Edmonds, Chairman, President, and Chief Executive Officer,
commented, "As I have noted before, the entire Missy sector is affected by
numerous challenges including a difficult macro economic environment,
declining consumer confidence resulting in particularly cautious spending, one
of the warmest fall selling seasons on record, and lower than anticipated
traffic. We are not unaffected by those same challenges. In addition, recent
announcements from a number of other retailers lead us to believe that the
remainder of the year will be even more promotional than anticipated."
"At this time, we believe that it is prudent to take a much more
conservative approach to our outlook for the remainder of the year. Based on
lower than expected overall sales and merchandise margins, we expect earnings
per share for the third quarter to be in the $.10 to $.13 range, which
includes an approximately $.02 gain for the lucy transaction. If the current
environment persists through the end of the year, we would anticipate ongoing
challenges with our same store sales performance and our merchandise margins
in the fourth quarter as well, and we now believe that the fourth quarter
earnings per diluted share will likely be considerably below last year's
levels."
Mr. Edmonds continued, "Although we are greatly disappointed with our
performance this year, we are optimistic about the direction of our product
offerings and remain committed to our long term growth strategy. We believe
that when the current economic conditions change, we will return to acceptable
levels of financial performance. We continue to monitor inventory closely and
enter November with inventories in our planned range; albeit at the higher
end. Further, we continue making significant investments in design and
merchandising talent, which is leading to new, innovative, and compelling
products, and are pleased with the continuing growth of our direct-to-consumer
business."
"Despite the current challenges, we've got an incredibly strong management
team leading the highly productive brand in Chico's, the profitable and
growing brand in WH|BM, and a brand with great potential in Soma Intimates.
We continue to believe that over time the leaders of these brands will
position us to deliver strong financial performance and add value for our
shareholders. Overall, the strength of our balance sheet, which includes
significant cash and no debt, combined with our continued ability to generate
positive cash flows from our existing and new stores, provides us with a solid
platform to maintain our strong position in the specialty apparel market."
The Company is a specialty retailer of private branded, sophisticated,
casual-to-dressy clothing, intimates, complementary accessories, and other
non-clothing gift items. The Company operates 1,012 women's specialty stores,
including stores in 48 states, the District of Columbia, the U.S. Virgin
Islands and Puerto Rico operating under the Chico's, White House | Black
Market and Soma Intimates names. The Company has 593 Chico's front-line
stores, 38 Chico's outlet stores, 294 White House | Black Market front-line
stores, 19 White House | Black Market outlet stores, 67 Soma Intimates front-
line stores and 1 Soma Intimates outlet store.
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 under Our Company
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 under Our Company
Executive Contacts:
Charles J. Kleman
Chico's FAS, Inc.
(239) 274-4105
F. Michael Smith
Chico's FAS, Inc.
(239) 274-4797
SOURCE Chico's FAS, Inc.
CONTACT: Charles J. Kleman, +1-239-274-4105; or F. Michael Smith,
+1-239-274-4797, both of Chico's FAS, Inc.
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(CHS)