Chico’s FAS, Inc. Reports Fourth Quarter and Fiscal Year 2017 Results

Chico’s FAS, Inc. (NYSE: CHS) today announced its financial results for the fiscal 2017 fourth quarter and fiscal year ended February 3, 2018.

For the fourteen weeks ended February 3, 2018 (“the fourth quarter”), the Company reported net income of $28.0 million, or $0.22 per diluted share, compared to net income of $13.5 million, or $0.10 per diluted share, for the thirteen weeks ended January 28, 2017 (“last year’s fourth quarter”). Results for the fourth quarter include the favorable impact of the Tax Cuts and Jobs Act of 2017 (“U.S. tax reform”) of approximately $10 million after-tax, or $0.08 per diluted share, as well as the benefit of the 53rd week of approximately $4 million after-tax, or $0.03 per diluted share.

For the fifty-three weeks ended February 3, 2018 (“fiscal 2017”), the Company reported net income of $101.0 million, or $0.79 per diluted share, compared to net income of $91.2 million, or $0.69 per diluted share, for the fifty-two weeks ended January 28, 2017 (“fiscal 2016”). Results for fiscal 2017 include the favorable impact of U.S. tax reform of approximately $10 million after-tax, or $0.08 per diluted share, as well as the benefit of the 53rd week of approximately $4 million after-tax, or $0.03 per diluted share. Results for fiscal 2016 include the unfavorable impact of restructuring and strategic charges and Boston Proper of $15.4 million after-tax, or $0.12 per diluted share.

“Our fourth quarter results exceeded expectations and demonstrate clear progress in the execution of our strategic initiatives to drive improved performance and value creation,” said Shelley Broader, CEO and President. “In 2017, we strengthened our brands’ positioning, enhanced the customer experience, maintained financial discipline and built a solid foundation for our next stage of profitable growth. We are excited about our sales-driving initiatives for 2018, and we are confident in our continued success.”

For the fourth quarter, net sales were $587.8 million compared to $600.8 million in last year’s fourth quarter. This decrease of 2.2% primarily reflects a comparable sales decline of 5.2% as well as a decrease in selling square footage in fiscal 2017, partially offset by the $29 million benefit of the 53rd week. The comparable sales decline consisted of lower average dollar sale and flat transaction count.

For fiscal 2017, net sales were $2.3 billion compared to $2.5 billion in fiscal 2016. This decrease of 7.8% primarily reflects a comparable sales decline of 7.7% as well as a decrease in selling square footage in fiscal 2017, partially offset by the $29 million benefit of the 53rd week. The comparable sales decline consisted of lower average dollar sale and a decline in transaction count.

For the fourth quarter, gross margin was $221.6 million, or 37.7% of net sales, compared to $213.4 million, or 35.5% of net sales, in last year’s fourth quarter. This 220 basis point increase primarily reflects a 170 basis point improvement in merchandise margin driven by lower average unit costs and a reduction in store occupancy costs.
more detail at:  http://chicosfas.com/investors/press-releases/press-release-details/2018/Chicos-FAS-Inc-Reports-Fourth-Quarter-and-Fiscal-Year-2017-Results/default.aspx

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