News Flash

Chico's FAS net income rises in Q1

28 May '09

4 min read

Store operating expenses for the fiscal 2009 first quarter decreased by $0.8 million primarily as a result of ongoing store-level cost reduction initiatives.

Marketing costs for the first quarter fiscal 2009 decreased by $5.0 million primarily as a result of the ongoing cost reduction initiatives and reduced print advertising in the first quarter of fiscal 2009 versus the first quarter of fiscal 2008.

Shared services, including headquarters and other non-brand specific expenses, for the 2009 first quarter decreased by $2.7 million mainly as a result of the Company's continued rationalization of its corporate expense structure.

Inventories
Consolidated inventory per selling square foot at the end of the 2009 first quarter was $56, reflecting a decrease of approximately 13% from $65 at the end of the prior year's first quarter. Quarter-ended inventory for the Chico's brand decreased approximately 18%, from the prior year's first quarter. Quarter-ended inventory for the WH|BM brand increased approximately 4% per selling square foot and includes $5.3 million of incremental inventory in-transit over the prior period. Excluding the incremental inventory in-transit, WH|BM inventory would have been down approximately 9% per selling square foot.

Cash and Marketable Securities
Cash and marketable securities at the end of the fiscal 2009 first quarter totaled $325.0 million, reflecting an approximate $56 million increase over the prior fiscal year-end. Cash flows from operating activities increased by $32.6 million when compared to the prior fiscal year's first quarter resulting from an increase in accounts payables including increased levels of inventory in-transit. Additionally, the Company expended $12.7 million in capital expenditures for the current quarter vs. $40.1 million for the same period last year.

Chico's FAS Inc

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