* 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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