Home / Knowledge / News / Apparel/Garments / Chico's Brand Inventory down over 10%
Chico's Brand Inventory down over 10%
08
Aug '08
Chico's FAS Inc reported that net sales for the four week period ended August 2, 2008 decreased 7.3% to $112.5 million from the $121.4 million reported for the four week period ended August 4, 2007. Comparable store sales for the same period decreased 18.5% compared to the July 2007 period.

For the thirteen week period ended August 2, 2008, net sales decreased 7.1% to $405.2 million from the $436.0 million reported for the thirteen week period ended August 4, 2007. For the same thirteen week period, comparable store sales decreased 15.9% compared to the second quarter of 2007.

For the twenty-six week period ended August 2, 2008, net sales decreased 8.4% to $814.8 million from the $889.1 million reported for the twenty-six week period ended August 4, 2007. For the same twenty-six week period, comparable store sales decreased 16.7% compared to the first half of 2007.

Based on the preliminary operating results for the thirteen weeks ended August 2, 2008, the Company expects second quarter earnings per diluted share to be in line with earlier commentary but below the current range of First Call estimates of 0.05 to $0.11, compared to the $0.22 per diluted share reported for the same period last year.

The lower earnings were primarily a result of lower sales for the quarter and higher markdowns in the Chico's brand made necessary to align merchandise inventory levels closer to the current sales trends. The Chico's brand end-of-quarter inventories are expected to be down in the range of 10% to 11% per square foot at cost compared to the second quarter of 2007. The Company will report second quarter operating results, and preliminary August sales, on August 26, 2008.

Commenting on the Company's outlook for the second quarter, Chairman, President and CEO Scott A. Edmonds said, "Consistent with our comments at the end of the first quarter, we were aggressive on markdowns at the Chico's brand to help drive business and manage inventory levels to lower comparable store sales trends.

While this resulted in lower earnings for the quarter, our inventories are better positioned as we go into fall season. Our balance sheet remains strong, with meaningful free cash flows expected through the remainder of the year. We currently have no debt and approximately $275 million in cash and marketable securities. Additionally, we continue to focus on expense control throughout the organization."

The Company is a specialty retailer of private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items. The Company operates 1,077 women's specialty stores, including stores in 49 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico operating under the Chico's, White House | Black Market and Soma Intimates names. The Company has 619 Chico's front-line stores, 39 Chico's outlet stores, 329 White House | Black Market front-line stores, 19 White House | Black Market outlet stores, 70 Soma Intimates front-line stores and 1 Soma Intimates outlet store.

Chico's FAS Inc


Must ReadView All

'Sportswear is much more mainstream than earlier'

Fashion | On 20th Jul 2018

'Sportswear is much more mainstream than earlier'

The business of sportswear has evolved at a fast pace over the years. ...

Courtesy: YKK

Textiles | On 20th Jul 2018

Japanese firm YKK explores opening office in Uzbekistan

Japanese company YKK recently discussed with the Uztuqimachiliksanoat ...

HFPA alerts member firms on latest US tariff announcement

Textiles | On 20th Jul 2018

HFPA alerts member firms on latest US tariff announcement

The US Home Fashion Products Association (HFPA) has alerted its...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search