Chico's 6-months net income climbs 35.3%

26 Aug '05

3 min read

In addition, the Company also announced that it plans to open 20 new Soma by Chico's stores during fiscal 2006 over and above the combined 20 percent net square footage growth rate outlined above for the Chico's and White House | Black Market brands.

The Company anticipates that additional investment will be required to establish the Soma by Chico's brand as an acceptable business meeting the profitability goals of the Company over the longer term. The Company believes the Soma by Chico's brand reduced the Company's operating margin by approximately 60 to 70 basis points for the second quarter of fiscal 2005 and the Company anticipates this will not change significantly in fiscal 2006 even considering the additional new stores planned. The Company further believes that an impact on margin of this order is acceptable when balanced against the possibility of its longer-term growth potential.

The Chico's FAS operates 710 women's specialty stores, including stores in 47 states, the District of Columbia, the US Virgin Islands and Puerto Rico operating under the Chico's, White House | Black Market, and Soma by Chico's names.

The Company owns 474 Chico's front-line stores, 27 Chico's outlet stores, 181 White House | Black Market front-line stores, 5 White House | Black Market outlet stores and 10 Soma by Chico's stores; franchisees own and operate 13 Chico's stores.

Chico's FAS Inc

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