The company reported net income of $22.7 million, or $0.18 per diluted share, compared to net income of $23.0 million, or $0.17 per diluted share for 2016. Results for the second quarter of 2016 include the impact of restructuring and strategic charges of $10.3 million after-tax, or $0.08 per diluted share.
For the twenty-six weeks ended July 29, 2017, the company reported net income of $56.3 million, or $0.44 per diluted share, compared to net income of $54.1 million, or $0.41 per diluted share, for the twenty-six weeks ended July 30, 2016. Results for the twenty-six weeks ended July 30, 2016 include the impact of restructuring and strategic charges of $12.5 million after-tax, or $0.09 per diluted share.
Gross margin was recorded at $209.1 million, or 36.1 per cent of net sales for the second quarter of fiscal 2017, compared to $240.8 million, or 37.9 per cent of net sales, in last year's second quarter. For the second quarter, selling, general and administrative expenses (SG&A) were $173.6 million, or 30.0 per cent of net sales, compared to $186.6 million, or 29.4 per cent of net sales, for last year's second quarter. This decrease of $13.0 million primarily reflects reduction in store operating expenses to align with sales as well as a decrease in unproductive marketing spend.
"Second quarter sales were disappointing, and we are taking decisive actions to adjust our assortments and enhance omni-channel capabilities in bellwether categories such as jackets at Chico's and dresses at White House Black Market. While it is early in the third quarter, these key categories are showing encouraging progress," Shelley Broader, CEO and president, said. "Our leadership team also continues to be keenly focused on driving our strategic priorities to transform Chico's into a more nimble, efficient and innovative retailer that continues to drive strong free cash flow in the long term."
For fiscal 2017, the company anticipates comparable sales to be down high single-digits with gross margin rate decreasing by approximately 75 to 100 basis points. The fiscal 2017 53rd week is not included in the comparable sales calculation. Net sales for the 53rd week are expected to be approximately $30 million. The SG&A expense will be down approximately $50 to $60 million compared to last year. (RR)
Fibre2Fashion News Desk – India
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