News Flash

Chico's/Soma brands' comparable store sales soar

20 Aug '10

4 min read

Store and direct operating expenses increased by $7.7 million in the second quarter, primarily due to increased occupancy expense, store labor costs, and higher credit card fees associated with approximately 50 net new opened stores over last year and higher sales volume versus last year. However, expressed as a percentage of net sales, store and direct operating expenses decreased 200 basis points due to the leverage resulting from the comparable store sales increase.

Marketing expenses increased $1.8 million in the second quarter primarily due to increased television, online and print media campaigns.

Inventories
End of quarter inventory increased $16.7 million or approximately 12.8% from last year's second quarter. Excluding an incremental $6.8 million of in-transit inventories and inventory earmarked for 18 net new stores slated for third quarter over last year, inventories per selling square foot were up only 1.4% over the end of second quarter last year.

Cash and Marketable Securities
Cash and marketable securities at the end of the quarter increased to $487.4 million from $377.5 million at the end of the second quarter fiscal 2009 and from $423.5 million as of the end of fiscal 2009.

Cash Flow
Net cash provided by operating activities for the first six months of 2010 decreased by $34.4 million over the same period last year primarily due to changes in working capital offset by higher net income. For the first half of fiscal 2010, the Company's capital expenditures totaled $34.4 million compared to $36.2 million for the same period last year.

Chico's FAS Inc

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