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Chico's FAS Sales Rise Amid ‘Tremendous Progress' In Turnaround

Chico’s FAS Sales Rise Amid ‘Tremendous Progress’ In Turnaround

June 08, 2021 at 03:18PM
by PYMNTS

Fashion retailer Chico’s FAS, whose stable of brands includes Soma, WHBM and Chico’s, reported that total company first-quarter sales increased by approximately 38 percent, according to a Tuesday (June 8) announcement.

The retailer reported “extraordinary sales growth” at Soma, its intimates brand, while it posted “improving sales performance” at White House Black Market and Chico’s, according to the announcement.

“Our first-quarter results underscore the tremendous progress we are making in our turnaround strategy, and the power of our three unique brands and being a digital-first, customer-led company,” Chico’s FAS CEO and President Molly Langenstein said in the announcement. “Our progress is measurable, and the opportunities planned throughout the coming year will continue driving sales growth, even deeper customer loyalty and market share gains.”

Chico’s FAS posted $134.3 million in SG&A expenses for the first quarter, or approximately 35 percent of net sales, in contrast to $130.2 million, or approximately 46 percent of net sales, for last year’s first quarter.

The company had inventories of approximately $210 million at the conclusion of the first quarter, down from approximately $273 million at the end of last year’s first quarter.

Chico’s FAS reported that net sales were $388 million for the first quarter, marking an improvement from $280.3 million in last year’s first quarter.

In addition, the company posted an $8.9 million net loss, or an 8-cent loss per diluted share, in contrast to a $178.3 million net loss, or a $1.55 loss per diluted share, for last year’s first quarter.

The company operated approximately 1,300 brick-and-mortar locations in the United States and sold merchandise across 66 international franchise locations in Mexico, in addition to two domestic franchise airport stores as of May 1 of this year.

In separate news, Dillard’s, the clothing and home furnishings retailer, reported that total Q1 retail sales soared by 73 percent over the past year. The company operates 250 Dillard’s stores, as well as 31 clearance centers covering 29 states and an online shop at dillards.com. Dillard’s reported $158.2 million in net income and $7.25 per share in net income, as well as a 42.7 percent retail gross margin.