Net sales increased 18.5% to $551.4 million with comparable sales increasing 12.8%
FORT MYERS, Fla., Aug. 17, 2011 /PRNewswire via COMTEX/ --
Chico's FAS, Inc. (NYSE: CHS) today announced its financial results for the fiscal 2011 second quarter and six months ended July 30, 2011.
(Logo: http://photos.prnewswire.com/prnh/20091112/FL09527LOGO )
Net Income and Earnings per Share
The Company reported an increase of 47% in earnings per share with net income totaling $43.4 million, or $0.25 per diluted share for the second quarter compared to net income of $30.5 million, or $0.17 per diluted share for the same period last year.
For the six months ended July 30, 2011, the Company reported an increase of 38% in earnings per share with net income totaling $89.3 million or $0.51 per diluted share, compared to net income of $65.9 million, or $0.37 per diluted share reported for the same period last year.
Net Sales
Net sales for the quarter increased 18.5% to $551.4 million from $465.4 million in last year's second quarter. Consolidated comparable sales increased 12.8% for the quarter following a 7.6% increase for the same period last year reflecting our compelling fashion offering and effective merchandising and marketing. The Chico's/Soma Intimates brands' comparable sales increased 11.9% following a 5.5% increase for the same period last year, and the White House | Black Market ("WH|BM") brand's comparable sales increased 14.9% following a 12.5% increase for the same period last year.
Gross Margin
Gross margin for the second quarter of $309.3 million, or 56.1% of net sales, represents a 40 basis point improvement over last year's second quarter driven by increased full-price selling partially offset by successful planned promotional activity.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the second quarter of $240.4 million, or 43.6% of net sales, represents an improvement of 190 basis point over last year's second quarter due to the sales leverage impact on store personnel and occupancy costs, slightly offset by higher performance based compensation.
Inventories
For the total company, weeks of inventory supply on hand decreased approximately 4% compared to the prior year, reflecting initiatives to drive inventory productivity. While in-store inventories increased approximately $16.5 million over last year, or 8% per selling square foot, this increase is consistent with our mix of new store growth and sales trends. The balance of our inventories increased primarily due to timing of deliveries, planned net new third quarter store openings and our expanding DTC channel.
Share Repurchase Program
During the second quarter of 2011, the Company repurchased 4.3 million shares for $61.2 million and has $84.2 million remaining under the original $200 million authorization approved by the Board of Directors in August 2010.
ABOUT CHICO'S FAS, INC.
The Company is a women's specialty retailer of private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items. The Company operates 1,221 specialty stores, including stores in 48 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico.
The Chico's brand currently operates 598 boutiques and 78 outlet stores, publishes a catalog during key shopping periods throughout the year, and conducts e-commerce at www.chicos.com.
White House | Black Market currently operates 354 boutiques and 25 outlet stores, publishes a catalog highlighting its latest fashions and conducts e-commerce at www.whbm.com.
Soma Intimates is the Company's developing concept with 150 boutiques and 16 outlet stores today. Soma Intimates also publishes a catalog for its customers and conducts e-commerce at www.soma.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 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 on Chico's FAS, Inc., please go to our corporate website, www.chicosfas.com.
Executive Contact:Robert C. Atkinson Vice President-Investor Relations Chico's FAS, Inc. (239) 274-4199
|
(Financial Tables Follow)
|
|
|
|
Chico's FAS, Inc.
Consolidated Statements of Income
(Unaudited)
(in thousands, except per share amounts)
|
|
|
Twenty-Six Weeks Ended
|
|
Thirteen Weeks Ended
|
|
|
July 30, 2011
|
|
July 31, 2010
|
|
July 30, 2011
|
|
July 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
% of Sales
|
|
Amount
|
|
% of Sales
|
|
Amount
|
|
% of Sales
|
|
Amount
|
|
% of Sales
|
|
|
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's/Soma Intimates
|
$ 749,258
|
|
68.8
|
|
$ 656,360
|
|
69.3
|
|
$374,324
|
|
67.9
|
|
$319,660
|
|
68.7
|
|
|
White House | Black Market
|
339,349
|
|
31.2
|
|
290,599
|
|
30.7
|
|
177,125
|
|
32.1
|
|
145,711
|
|
31.3
|
|
|
Total net sales
|
1,088,607
|
|
100.0
|
|
946,959
|
|
100.0
|
|
551,449
|
|
100.0
|
|
465,371
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
461,617
|
|
42.4
|
|
406,173
|
|
42.9
|
|
242,122
|
|
43.9
|
|
206,164
|
|
44.3
|
|
|
Gross margin
|
626,990
|
|
57.6
|
|
540,786
|
|
57.1
|
|
309,327
|
|
56.1
|
|
259,207
|
|
55.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store and direct operating expenses
|
364,977
|
|
33.5
|
|
333,501
|
|
35.2
|
|
183,461
|
|
33.3
|
|
164,853
|
|
35.4
|
|
|
Marketing
|
51,971
|
|
4.8
|
|
47,091
|
|
5.0
|
|
21,073
|
|
3.8
|
|
18,011
|
|
3.9
|
|
|
National Store Support Center
|
68,253
|
|
6.3
|
|
57,782
|
|
6.1
|
|
35,822
|
|
6.5
|
|
28,982
|
|
6.2
|
|
|
Total selling, general and
administrative expenses
|
485,201
|
|
44.6
|
|
438,374
|
|
46.3
|
|
240,356
|
|
43.6
|
|
211,846
|
|
45.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
141,789
|
|
13.0
|
|
102,412
|
|
10.8
|
|
68,971
|
|
12.5
|
|
47,361
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
820
|
|
0.1
|
|
844
|
|
0.1
|
|
420
|
|
0.1
|
|
394
|
|
0.0
|
|
|
Income before income taxes
|
142,609
|
|
13.1
|
|
103,256
|
|
10.9
|
|
69,391
|
|
12.6
|
|
47,755
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
53,300
|
|
4.9
|
|
37,400
|
|
3.9
|
|
26,000
|
|
4.7
|
|
17,300
|
|
3.7
|
|
|
Net income
|
$ 89,309
|
|
8.2
|
|
$ 65,856
|
|
7.0
|
|
$ 43,391
|
|
7.9
|
|
$ 30,455
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share-basic
|
$ 0.51
|
|
|
|
$ 0.37
|
|
|
|
$ 0.25
|
|
|
|
$ 0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common & common equivalent share-diluted
|
$ 0.51
|
|
|
|
$ 0.37
|
|
|
|
$ 0.25
|
|
|
|
$ 0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding-basic
|
173,082
|
|
|
|
177,417
|
|
|
|
171,282
|
|
|
|
177,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common & common
equivalent shares outstanding-diluted
|
174,298
|
|
|
|
178,807
|
|
|
|
172,495
|
|
|
|
178,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share
|
$ 0.15
|
|
|
|
$ 0.12
|
|
|
|
$ 0.05
|
|
|
|
$ 0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's FAS, Inc.
Consolidated Balance Sheets
(in thousands)
|
|
|
July 30,
|
|
January 29,
|
|
July 31,
|
|
|
2011
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$ 56,109
|
|
$ 14,695
|
|
$ 17,559
|
|
|
Marketable securities, at fair value
|
448,211
|
|
534,019
|
|
469,829
|
|
|
Receivables
|
5,619
|
|
3,845
|
|
7,483
|
|
|
Income tax receivable
|
11,303
|
|
6,565
|
|
657
|
|
|
Inventories
|
190,745
|
|
159,814
|
|
146,899
|
|
|
Prepaid expenses
|
31,184
|
|
26,851
|
|
27,018
|
|
|
Deferred taxes
|
9,084
|
|
10,976
|
|
9,823
|
|
|
Total Current Assets
|
752,255
|
|
756,765
|
|
679,268
|
|
|
|
|
|
|
|
|
|
Property and Equipment:
|
|
|
|
|
|
|
|
Land and land improvements
|
43,314
|
|
42,468
|
|
42,080
|
|
|
Building and building improvements
|
92,864
|
|
89,328
|
|
85,628
|
|
|
Equipment, furniture and fixtures
|
463,130
|
|
428,217
|
|
406,682
|
|
|
Leasehold improvements
|
436,432
|
|
426,141
|
|
418,585
|
|
|
Total Property and Equipment
|
1,035,740
|
|
986,154
|
|
952,975
|
|
|
Less accumulated depreciation and amortization
|
(510,958)
|
|
(468,777)
|
|
(425,498)
|
|
|
Property and Equipment, Net
|
524,782
|
|
517,377
|
|
527,477
|
|
|
|
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
|
|
|
Goodwill
|
96,774
|
|
96,774
|
|
96,774
|
|
|
Other intangible assets
|
38,930
|
|
38,930
|
|
38,930
|
|
|
Deferred taxes
|
-
|
|
964
|
|
39,597
|
|
|
Other assets, net
|
5,532
|
|
5,211
|
|
4,940
|
|
|
Total Other Assets
|
141,236
|
|
141,879
|
|
180,241
|
|
|
$ 1,418,273
|
|
$ 1,416,021
|
|
$ 1,386,986
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
$ 132,703
|
|
$ 106,680
|
|
$ 101,595
|
|
|
Accrued liabilities
|
91,885
|
|
94,837
|
|
93,592
|
|
|
Current portion of deferred liabilities
|
21,150
|
|
19,760
|
|
19,681
|
|
|
Total Current Liabilities
|
245,738
|
|
221,277
|
|
214,868
|
|
|
|
|
|
|
|
|
|
Noncurrent Liabilities:
|
|
|
|
|
|
|
|
Deferred liabilities
|
130,196
|
|
129,837
|
|
137,437
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
Preferred stock
|
-
|
|
-
|
|
-
|
|
|
Common stock
|
1,722
|
|
1,779
|
|
1,789
|
|
|
Additional paid-in capital
|
293,881
|
|
282,528
|
|
276,000
|
|
|
Retained earnings
|
746,006
|
|
780,212
|
|
756,043
|
|
|
Accumulated other comprehensive income
|
730
|
|
388
|
|
849
|
|
|
Total Stockholders' Equity
|
1,042,339
|
|
1,064,907
|
|
1,034,681
|
|
|
$ 1,418,273
|
|
$ 1,416,021
|
|
$ 1,386,986
|
|
|
|
|
|
|
|
|
|
|
|
Chico's FAS, Inc.
Consolidated Cash Flow Statements
(Unaudited)
(in thousands)
|
|
|
Twenty-Six Weeks Ended
|
|
|
July 30,
2011
|
|
July 31,
2010
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
$ 89,309
|
|
$ 65,856
|
|
|
Adjustments to reconcile net income to net cash
provided by operating activities --
Depreciation and amortization
|
48,353
|
|
46,636
|
|
|
Deferred tax expense (benefit)
|
4,845
|
|
(3,628)
|
|
|
Stock-based compensation expense
|
8,365
|
|
5,950
|
|
|
Excess tax benefit from stock-based compensation
|
(1,642)
|
|
(1,011)
|
|
|
Deferred rent and lease credits
|
(9,167)
|
|
(8,037)
|
|
|
Loss on disposal of property and equipment
|
1,756
|
|
1,813
|
|
|
Decrease (increase) in assets --
Receivables, net
|
(1,774)
|
|
(3,578)
|
|
|
Income tax receivable
|
(4,738)
|
|
(346)
|
|
|
Inventories
|
(30,931)
|
|
(8,382)
|
|
|
Prepaid expenses and other
|
(5,904)
|
|
(2,666)
|
|
|
Increase in liabilities --
Accounts payable
|
17,417
|
|
15,203
|
|
|
Accrued and other deferred liabilities
|
6,637
|
|
2,110
|
|
|
Total adjustments
|
33,217
|
|
44,064
|
|
|
Net cash provided by operating activities
|
122,526
|
|
109,920
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Decrease (increase) in marketable securities
|
86,150
|
|
(82,884)
|
|
|
Purchases of property and equipment, net
|
(56,265)
|
|
(34,380)
|
|
|
Net cash provided by (used in) investing activities
|
29,885
|
|
(117,264)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from issuance of common stock
|
2,762
|
|
1,378
|
|
|
Excess tax benefit from stock-based compensation
|
1,642
|
|
1,011
|
|
|
Dividends paid
|
(17,521)
|
|
(14,282)
|
|
|
Repurchase of common stock
|
(97,880)
|
|
(247)
|
|
|
Net cash used in financing activities
|
(110,997)
|
|
(12,140)
|
|
Net increase (decrease) in cash and cash equivalents
|
41,414
|
|
(19,484)
|
|
|
CASH AND CASH EQUIVALENTS, Beginning of period
|
14,695
|
|
37,043
|
|
|
CASH AND CASH EQUIVALENTS, End of period
|
$ 56,109
|
|
$ 17,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's FAS, Inc.
|
|
|
Boutique Count and Square Footage
|
|
|
As of July 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
New
|
|
|
|
As of
|
|
|
|
|
4/30/2011
|
|
Stores
|
|
Closures
|
|
7/30/2011
|
|
|
|
|
Store count:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline boutiques
|
595
|
|
4
|
|
(1)
|
|
598
|
|
|
|
|
Chico's outlets
|
71
|
|
6
|
|
-
|
|
77
|
|
|
|
|
WH|BM frontline boutiques
|
350
|
|
8
|
|
(2)
|
|
356
|
|
|
|
|
WH|BM outlets
|
24
|
|
1
|
|
-
|
|
25
|
|
|
|
|
Soma frontline boutiques
|
134
|
|
16
|
|
(2)
|
|
148
|
|
|
|
|
Soma outlets
|
10
|
|
5
|
|
(1)
|
|
14
|
|
|
|
|
Total Chico's FAS, Inc.
|
1,184
|
|
40
|
|
(6)
|
|
1,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remodels/
|
|
|
|
|
|
|
|
|
|
|
Relos and
|
|
|
|
|
As of
|
|
New
|
|
|
|
change in
|
|
As of
|
|
|
4/30/2011
|
|
Stores
|
|
Closures
|
|
SSF
|
|
7/30/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net selling square footage (SSF):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline boutiques
|
1,605,751
|
|
11,464
|
|
(1,120)
|
|
3,777
|
|
1,619,872
|
|
|
Chico's outlets
|
185,056
|
|
13,450
|
|
-
|
|
-
|
|
198,506
|
|
|
WH|BM frontline boutiques
|
730,625
|
|
16,596
|
|
(4,561)
|
|
3,114
|
|
745,774
|
|
|
WH|BM outlets
|
46,346
|
|
1,892
|
|
-
|
|
-
|
|
48,238
|
|
|
Soma frontline boutiques
|
273,348
|
|
34,112
|
|
(4,051)
|
|
(677)
|
|
302,732
|
|
|
Soma outlets
|
18,154
|
|
9,552
|
|
(1,971)
|
|
-
|
|
25,735
|
|
|
Total Chico's FAS, Inc.
|
2,859,280
|
|
87,066
|
|
(11,703)
|
|
6,214
|
|
2,940,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Chico's FAS, Inc.