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Chico's FAS, Inc. Announces Record Third Quarter and Nine Month Revenues And Earnings

11/29/2005
* Third quarter net income up 43.5% to a record $53 million * Revenues rose 31.7% to a record $1.029 billion for the nine months * Net income climbed 38.1% to a record $150 million for the nine months

FORT MYERS, Fla., Nov 29, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Chico's FAS, Inc. (NYSE: CHS) today announced its financial results for the third quarter and nine months ended October 29, 2005.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030428/CHICOLOGO )

Net sales for the third quarter ended October 29, 2005, increased 33.0% to a record $359 million from $270 million for the third quarter ended October 30, 2004. Net income rose 43.5% to $53 million, or $0.29 a diluted share, compared to net income of $37 million, or $0.21 a diluted share (as adjusted for the 2 for 1 stock split in February 2005) in the prior year's third quarter. Comparable store sales for the Company-owned stores increased 16.0% for the thirteen-week period ended October 29, 2005 compared to the same thirteen-week period last year.

For the nine months ended October 29, 2005, net sales increased 31.7% to a record $1.029 billion from $781 million for the prior year's nine months ended October 30, 2004. Net income rose 38.1% to $150 million, or $0.82 a diluted share, compared to net income of $108 million, or $0.60 a diluted share (as adjusted for the 2 for 1 stock split in February 2005) in the prior period. Comparable store sales for the Company-owned stores increased 14.2% for the thirty-nine week period compared to the same thirty-nine week period last year.

Scott A. Edmonds, Chico's President and CEO, commented, "The third quarter's operating margin of 22.9% is our best operating margin since going public in 1993. This record-setting operating margin is largely a result of our outstanding merchandise offerings and from our merchants' commitment to improving average retail price points and initial markups, each of which also contributed to our third quarter double digit same store sales. As we separately reported, the third quarter's double digit same store sales trends have continued into the first month of our fourth quarter with an 11.8% same store sales increase for November."

Mr. Edmonds continued, "Given the momentum of the White House | Black Market brand and upcoming real estate opportunities, we feel it is prudent to accelerate this brand's store opening program for fiscal 2006 by increasing our original planned growth by an additional 20 new stores. The partnership between the White House | Black Market merchandising teams and the Chico's operations teams has worked better and quicker than expected and we are delighted to be able to leverage these results by adding these additional stores to our planned openings. This will bring the Company's fiscal 2006 new store plan to approximately 150 net new stores, with the breakdown by brand being approximately 70 White House | Black Market stores, 60 Chico's stores, and 20 Soma by Chico's stores."

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 757 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 498 Chico's front-line stores, 29 Chico's outlet stores, 196 White House | Black Market front-line stores, 6 White House | Black Market outlet stores and 15 Soma by Chico's stores; franchisees own and operate 13 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


                          (Financial Tables Follow)


                              Chico's FAS, Inc.
                         Consolidated Balance Sheets
                                (in thousands)



                                                  October 29,      January 29,
                                                     2005             2005
                                                  (Unaudited)
                                      ASSETS
    Current Assets:
Cash and cash equivalents                  $18,121          $14,426
         Marketable securities, at market           382,160          251,199
         Receivables                                  9,634            5,106
         Inventories                                101,531           73,223
         Prepaid expenses                            12,935            9,429
         Deferred taxes                              16,149           11,184
              Total Current Assets                  540,530          364,567

Property and Equipment:

Land and land improvements                   7,078            6,055
         Building and building improvements          33,087           29,286
         Equipment, furniture and fixtures          178,210          140,360
         Leasehold improvements                     201,141          166,096
              Total Property and Equipment          419,516          341,797
         Less accumulated depreciation and
          amortization                             (119,577)         (93,834)
              Property and Equipment, Net           299,939          247,963

Other Assets:

Goodwill                                    61,796           61,796
         Other intangible assets                     34,064           34,042
         Other assets, net                           19,383            7,361
              Total Other Assets                    115,243          103,199
                                                   $955,712         $715,729

                       LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable                           $67,519          $36,725
         Accrued liabilities                         83,000           58,258
         Current portion of deferred liabilities        524              332
              Total Current Liabilities             151,043           95,315

Noncurrent Liabilities:

Deferred liabilities                        60,878           47,149
         Deferred taxes                               2,010           12,397
              Total Noncurrent Liabilities           62,888           59,546

Stockholders' Equity:

Common stock                                 1,810            1,790
         Additional paid-in capital                 183,152          147,652
         Unearned compensation                       (4,143)              --
         Retained earnings                          561,077          411,556
         Accumulated other comprehensive loss          (115)            (130)
              Total Stockholders' Equity            741,781          560,868
                                                   $955,712         $715,729


                              Chico's FAS, Inc.
                      Consolidated Statements of Income
                                 (Unaudited)
                   (in thousands, except per share amounts)

                 Thirty-Nine Weeks Ended             Thirteen Weeks Ended
                October 29,     October 30,      October 29,     October 30,
                    2005            2004              2005           2004

                  Amount  % of    Amount  % of    Amount  % of   Amount  % of
                          Sales           Sales           Sales          Sales

    Net sales
     by Chico's
     /Soma
     stores     $816,672  79.4  $658,472  84.3  $277,601  77.4  $226,129  83.8
    Net sales
     by White
     House |
     Black
     Market
     stores      179,545  17.4    97,117  12.4    68,450  19.1    34,292  12.7
    Net sales
     by
     catalog

& Internet 24,526 2.4 19,402 2.5 9,534 2.6 6,991 2.6

Net sales

to

franchisees 8,102 0.8 6,340 0.8 3,080 0.9 2,361 0.9

Net
      sales    1,028,845 100.0   781,331 100.0   358,665 100.0   269,773 100.0

    Cost of
     goods
     sold        394,935  38.4   296,605  38.0   133,308  37.2   101,568  37.7
     Gross
      profit     633,910  61.6   484,726  62.0   225,357  62.8   168,205  62.3

    General,

administrative

and store

operating

expenses 371,041 36.1 290,775 37.2 131,711 36.7 101,976 37.8

Depreciation

and

amortization 31,192 3.0 20,748 2.6 11,339 3.2 7,047 2.6

Income

from

operations 231,677 22.5 173,203 22.2 82,307 22.9 59,182 21.9

Interest
     income,
     net           5,658   0.5     1,373   0.2     2,154   0.6       620   0.2
     Income
      before
      taxes      237,335  23.0   174,576  22.4    84,461  23.5    59,802  22.1
    Income
     tax

provision 87,814 8.5 66,338 8.5 31,251 8.7 22,725 8.4

Net

income $149,521 14.5 $108,238 13.9 $53,210 14.8 $37,077 13.7

Per share
      data:
    Net
     income
     per
     common
     share-
     basic(1)      $0.83           $0.61           $0.29           $0.21

    Net
     income
     per
     common
     & common
     equivalent
     share-
     diluted
     (1)           $0.82           $0.60           $0.29           $0.21

    Weighted
     average
     common
     shares
     outstanding
     -basic
     (1)         180,218         178,079         180,639         178,722

    Weighted
     average
     common &
     common
     equivalent
     shares
     outstanding
     -diluted
     (1)         182,115         180,044         182,556         180,238

(1) Prior year amounts restated to give effect to the 2 for 1 stock split

in February 2005


     Executive Contacts:
     Charles J. Kleman
     Chief Financial Officer
     Chico's FAS, Inc.
     (239) 274-4105

     F. Michael Smith
     Vice President

Investor and Community Relations

Chico's FAS, Inc.

(239) 274-4797

SOURCE Chico's FAS, Inc.

Charles J. Kleman, 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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