For the second quarter (Q2) of fiscal 2023 (FY23), Chico's FAS reported a net income of $59.3 million, or $0.49 per diluted share. This compares to a net income of $42.0 million, or $0.34 per diluted share, for the same quarter last year. The company registered an adjusted net income of $33.7 million, or $0.28 per diluted share for Q2, excluding the reversal of a $25.6 million non-cash tax valuation allowance, as detailed in the accompanying GAAP to non-GAAP reconciliation.

In Q2, the company's net sales totalled $545.1 million, compared to $558.7 million in the corresponding quarter last year. This 2.4 per cent decrease was primarily due to a comparable sales decline of 3.0 per cent year-over-year. The decline in comparable sales was attributed to a reduction in transaction count, partially offset by an increase in average dollar sales.

"We delivered another quarter of strong operating income and earnings performance, consistent with our outlook. Across all three brands, full-priced sales remained robust. We attracted new customers and gained market share. The average dollar spend and units per transaction for the entire company increased, and we also saw an increase in average unit retail at Chico's and Soma. Our apparel customers continue to opt for head-to-toe dressing and have responded well to new proportions in sportswear. Meanwhile, our intimate apparel customers have been enthusiastic about our new strapless and unlined bra launches," said Molly Langenstein, chief executive officer and president of Chico's FAS.

The company reported a net income per diluted share of $0.49 and an adjusted net income per diluted share of $0.28 for the second quarter, excluding a non-cash tax benefit, according to a press release.

"We continue to deliver strong results and generate meaningful cash flow. Our unrelenting focus on our brand strategy, underscored by our four strategic pillars—customer-led, product-obsessed, digital-first, and operationally excellent—gives us confidence in achieving our long-term financial targets. This will further enhance our operating performance, strengthen our balance sheet, and increase shareholder value," concluded Langenstein.

Fibre2Fashion News Desk (RR)

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