FORT MYERS, Fla., Feb. 22, 2012 /PRNewswire/ -- Chico's FAS, Inc.
(NYSE: CHS) today announced its financial results for the fiscal
2011 fourth quarter and fiscal year ended January 28, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20110920/FL71045LOGO)
Net Income and Earnings per Share
For the fourth quarter, net income was $25.1 million, or $0.15 per diluted share, an earnings per share
increase of 25% compared to net income of $20.7 million, or $0.12 per diluted share, for last year's fourth
quarter.
For the fiscal year ended January 28,
2012, excluding non-recurring acquisition and integration
costs, net income was $144.4 million,
or $0.84 per diluted share, an
earnings per share increase of 31% compared to net income of
$115.4 million, or $0.64 per diluted share in fiscal 2010. For
fiscal 2011, net income, including acquisition and integration
costs, was $140.9 million, or
$0.82 per diluted share.
Net Sales
For the fourth quarter, net sales were $569.2 million, an increase of 19.8% compared to
$475.0 million in last year's fourth
quarter. The increase reflects a comparable sales increase of 8.7%,
an 8.7% increase in square footage and $28.5
million in sales for Boston Proper. The consolidated
comparable sales increase of 8.7% for the fourth quarter was on top
of a 4.5% increase for last year's fourth quarter, and reflects
increases in both average dollar sale and transaction count.
The Chico's/Soma Intimates brands' comparable sales increased
5.5% on top of a 4.4% increase in last year's fourth quarter and
the White House | Black Market ("WH|BM") brand's comparable sales
increased 15.4% on top of a 4.7% increase in last year's fourth
quarter.
Gross Margin
For the fourth quarter, gross margin was $297.9 million, an increase of 17.9% compared to
$252.7 million in last year's fourth
quarter. As a percentage of net sales, gross margin was
52.3%, which was a 90 basis point decrease from last year's fourth
quarter. This decrease was primarily attributable to planned
strategic use of Chico's brand inventory for traffic-driving
promotions during the fourth quarter and the inclusion of Boston
Proper's results, which were partially offset by higher margins at
the WH|BM and Soma Intimates brands due to increased full-price
selling and effective promotional activities.
Selling, General and Administrative Expenses
For the fourth quarter, selling, general and administrative
expenses (SG&A) were $259.3
million, an increase of 16.7% compared to $222.2 million in last year's fourth quarter.
As a percentage of net sales, SG&A was 45.5%, which was a
130 basis point decrease from last year's fourth quarter.
This decrease was primarily attributable to the sales
leverage impact on store expenses and the inclusion of Boston
Proper's results, partially offset by incremental marketing
expenses.
Tax Rate
For the fourth quarter, the effective tax rate was 35.3%
compared to 33.0% in last year's fourth quarter. The
effective tax rate for last year reflected relatively higher levels
of favorable state tax settlements.
Inventories
Excluding $15.1 million of
inventory related to Boston Proper, inventories increased
approximately $19.6 million or 12.3%
over last year, of which $11 million
was for year-over-year new stores and $3
million was due to higher average unit costs. At the
end of the fourth quarter, total inventories were $194.5 million compared to $159.8 million for the fourth quarter last
year.
Cash and Marketable Securities
Cash and marketable securities at the end of the year totaled
$247.9 million compared to
$548.7 million at the end of last
year, reflecting earnings in 2011, partially offset by $213 million for the acquisition of Boston
Proper, $132 million in capital
expenditures, $183 million of share
repurchases, or 14 million shares, and $34
million in dividend payments.
Share Repurchase Program
During the fourth quarter of 2011, the Company repurchased 2.4
million shares for $25.0 million
under its new $200 million share
repurchase program announced in November.
Outlook
For fiscal 2012, including Boston Proper, the Company's planning
assumptions are:
- Net sales increase at a mid teens percentage rate to
approximately $2.5 billion, which
includes comparable sales growth at a mid-single-digit rate,
approximately 9% growth in store square footage and approximately
$30 million in sales from the 53rd
week;
- Gross margin rate down approximately 50 basis points;
- SG&A expense, as a percentage of net sales, down
approximately 50 basis points;
- Effective tax rate to be approximately 38%;
- Inventories to be in-line with sales growth; and
- Capital expenditures of approximately $150 million.
A conference call to review the fourth quarter and year results
is scheduled for today at 8:30 a.m.
EST. A live webcast of the call will be available at
the Events Calendar page of the Chico's FAS, Inc. corporate
website, www.chicosfas.com.
ABOUT CHICO'S FAS, INC.
The Company, through its brands – Chico's, White House | Black
Market, Soma Intimates, and Boston Proper, is a women's specialty
retailer of private branded, sophisticated, casual-to-dressy
clothing, intimates, complementary accessories, and other
non-clothing gift items.
The Chico's brand offers women a combination of great style,
one-of-a-kind details and warm personal service. Chico's currently
operates 601 boutiques and 84 outlets throughout the U.S.,
publishes a monthly catalog and offers round-the-clock shopping at
www.chicos.com.
White House | Black Market strives to make women feel beautiful
with apparel and accessories in the honest simplicity of black and
white and the individuality of styles built from it. White House |
Black Market currently operates 363 boutiques and 27 outlets,
publishes a catalog highlighting its latest fashions and connects
with customers at www.whbm.com.
Soma Intimates offers beautiful and sensual lingerie, loungewear
and beauty. Soma Intimates currently operates 169 boutiques and 17
outlets, publishes a catalog coinciding with key shopping periods
and sells direct-to-consumer at www.soma.com.
Boston Proper is a leading direct-to-consumer retailer of
women's high-end apparel and accessories. Boston Proper provides
unique, distinctive fashion designed for today's independent,
confident and active woman. The merchandise focus is about creating
a daring, modern style with a sensual feel and is available
exclusively through the Boston Proper catalog and website,
www.bostonproper.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 Certain statements contained herein,
including without limitation, statements addressing the beliefs,
plans, objectives, estimates or expectations of the Company or
future results or events constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended. Such forward-looking statements involve
known or unknown risks, including, but not limited to, general
economic and business conditions, and conditions in the specialty
retail industry. There can be no assurance that the actual
future results, performance, or achievements expressed or implied
by such forward-looking statements will occur. Users of
forward-looking statements are encouraged to review the Company's
latest annual report on Form 10-K, its filings on Form 10-Q,
management's discussion and analysis in the Company's latest annual
report to stockholders, the Company's filings on Form 8-K, and
other federal securities law filings for a description of other
important factors that may affect the Company's business, results
of operations and financial condition. The Company does not
undertake to publicly update or revise its forward-looking
statements even if experience or future changes make it clear that
projected results expressed or implied in such statements will not
be realized.
For more detailed information on Chico's FAS, Inc., please visit
www.chicosfas.com.
(Financial Tables Follow)
|
|
Chico's FAS,
Inc.
Consolidated
Statements of Income
(in
thousands, except per share amounts)
|
|
|
Fifty-Two
Weeks Ended
|
|
Thirteen
Weeks Ended
|
|
|
January 28,
2012
|
|
January 29,
2011
|
|
January 28,
2012
|
|
January 29,
2011
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's/Soma
Intimates
|
$ 1,460,518
|
|
66.5
|
|
$1,314,649
|
|
69.0
|
|
$354,052
|
|
62.2
|
|
$320,660
|
|
67.5
|
|
White House | Black
Market
|
696,358
|
|
31.7
|
|
590,305
|
|
31.0
|
|
186,681
|
|
32.8
|
|
154,314
|
|
32.5
|
|
Boston Proper
|
39,484
|
|
1.8
|
|
–
|
|
–
|
|
28,474
|
|
5.0
|
|
–
|
|
–
|
|
Total net
sales
|
2,196,360
|
|
100.0
|
|
1,904,954
|
|
100.0
|
|
569,207
|
|
100.0
|
|
474,974
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
969,989
|
|
44.2
|
|
836,379
|
|
43.9
|
|
271,335
|
|
47.7
|
|
222,251
|
|
46.8
|
|
Gross
margin
|
1,226,371
|
|
55.8
|
|
1,068,575
|
|
56.1
|
|
297,872
|
|
52.3
|
|
252,723
|
|
53.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
998,861
|
|
45.5
|
|
891,493
|
|
46.8
|
|
259,138
|
|
45.5
|
|
222,214
|
|
46.8
|
|
Acquisition and integration
costs
|
5,133
|
|
0.2
|
|
–
|
|
–
|
|
148
|
|
0.0
|
|
–
|
|
–
|
|
Total
selling, general and administrative expenses
|
1,003,994
|
|
45.7
|
|
891,493
|
|
46.8
|
|
259,286
|
|
45.5
|
|
222,214
|
|
46.8
|
|
Income from
operations
|
222,377
|
|
10.1
|
|
177,082
|
|
9.3
|
|
38,586
|
|
6.8
|
|
30,509
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
1,597
|
|
0.1
|
|
1,712
|
|
0.1
|
|
212
|
|
0.0
|
|
385
|
|
0.1
|
|
Income before income
taxes
|
223,974
|
|
10.2
|
|
178,794
|
|
9.4
|
|
38,798
|
|
6.8
|
|
30,894
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
83,100
|
|
3.8
|
|
63,400
|
|
3.3
|
|
13,700
|
|
2.4
|
|
10,200
|
|
2.1
|
|
Net
income
|
$
140,874
|
|
6.4
|
|
$ 115,394
|
|
6.1
|
|
$ 25,098
|
|
4.4
|
|
$ 20,694
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share-basic
|
$
0.82
|
|
|
|
$
0.65
|
|
|
|
$ 0.15
|
|
|
|
$ 0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common &
common equivalent share–diluted
|
$
0.82
|
|
|
|
$
0.64
|
|
|
|
$ 0.15
|
|
|
|
$ 0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares
outstanding–basic
|
169,153
|
|
|
|
176,778
|
|
|
|
163,871
|
|
|
|
176,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common &
common
equivalent shares
outstanding–diluted
|
170,250
|
|
|
|
178,034
|
|
|
|
164,801
|
|
|
|
177,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.20
|
|
|
|
$
0.16
|
|
|
|
$
0.05
|
|
|
|
$
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's FAS,
Inc.
Consolidated
Balance Sheets
(in
thousands)
|
|
|
January
28,
|
|
January
29,
|
|
January
30,
|
|
|
2012
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
58,919
|
|
$
14,695
|
|
$
37,043
|
|
Marketable
securities, at fair value
|
188,934
|
|
534,019
|
|
386,500
|
|
Inventories
|
194,469
|
|
159,814
|
|
138,516
|
|
Prepaid expenses
and other current assets
|
55,104
|
|
48,237
|
|
37,921
|
|
Total Current Assets
|
497,426
|
|
756,765
|
|
599,980
|
|
|
|
|
|
|
|
|
Property and Equipment, Net
|
550,230
|
|
517,377
|
|
521,529
|
|
|
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
|
|
Goodwill
|
238,693
|
|
96,774
|
|
96,774
|
|
Other intangible
assets
|
132,112
|
|
38,930
|
|
38,930
|
|
Other assets,
net
|
6,691
|
|
6,175
|
|
61,590
|
|
Total Other Assets
|
377,496
|
|
141,879
|
|
197,294
|
|
|
$
1,425,152
|
|
$
1,416,021
|
|
$
1,318,803
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
100,395
|
|
$
106,665
|
|
$
79,219
|
|
Other current
liabilities
|
137,714
|
|
114,612
|
|
115,487
|
|
Total Current Liabilities
|
238,109
|
|
221,277
|
|
194,706
|
|
|
|
|
|
|
|
|
Noncurrent
Liabilities:
|
|
|
|
|
|
|
Deferred
liabilities
|
125,690
|
|
129,837
|
|
142,179
|
|
Deferred
taxes
|
52,125
|
|
–
|
|
–
|
|
Total Deferred Liabilities
|
177,815
|
|
129,837
|
|
142,179
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Preferred
stock
|
–
|
|
–
|
|
–
|
|
Common
stock
|
1,657
|
|
1,779
|
|
1,781
|
|
Additional paid-in
capital
|
302,612
|
|
282,528
|
|
268,109
|
|
Retained
earnings
|
704,631
|
|
780,212
|
|
711,624
|
|
Accumulated other comprehensive
income
|
328
|
|
388
|
|
404
|
|
Total
Stockholders' Equity
|
1,009,228
|
|
1,064,907
|
|
981,918
|
|
|
$
1,425,152
|
|
$
1,416,021
|
|
$
1,318,803
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's FAS,
Inc.
|
|
Consolidated
Cash Flow Statements
|
|
(Unaudited)
|
|
(in
thousands)
|
|
|
Fifty-Two
Weeks Ended
|
|
|
January
28,
|
|
January
29,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
Net income
|
$ 140,874
|
|
$
115,394
|
|
Adjustments to reconcile
net income to net cash
|
|
|
|
|
provided by
operating activities -
|
|
|
|
|
Depreciation and
amortization
|
99,430
|
|
94,113
|
|
Deferred tax
expense
|
19,489
|
|
32,501
|
|
Stock-based
compensation expense
|
15,198
|
|
10,548
|
|
Excess tax benefit
from stock-based compensation
|
(2,643)
|
|
(2,655)
|
|
Deferred rent and
lease credits
|
(19,073)
|
|
(16,624)
|
|
Loss on disposal
of property and equipment
|
2,949
|
|
3,085
|
|
(Increase) in assets, net
of effects of acquisition -
|
|
|
|
|
Inventories
|
(20,812)
|
|
(21,298)
|
|
Prepaid expenses
and other current assets
|
(3,491)
|
|
(8,946)
|
|
(Decrease) increase in
liabilities, net of effects of acquisition -
|
|
|
|
|
Accounts
payable
|
(14,571)
|
|
27,446
|
|
Accrued and other
deferred liabilities
|
37,831
|
|
6,062
|
|
Total adjustments
|
114,307
|
|
124,232
|
|
Net cash provided by operating activities
|
255,181
|
|
239,626
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
Purchases of marketable
securities
|
(592,962)
|
|
(579,488)
|
|
Proceeds from sale of
marketable securities
|
937,987
|
|
431,953
|
|
Acquisition of Boston
Proper, Inc., net of cash acquired
|
(213,561)
|
|
–
|
|
Purchases of property and
equipment, net
|
(131,757)
|
|
(73,045)
|
|
Net cash used in investing activities
|
(293)
|
|
(220,580)
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
Proceeds from issuance of
common stock
|
4,549
|
|
3,648
|
|
Excess tax benefit from
stock-based compensation
|
2,643
|
|
2,655
|
|
Dividends paid
|
(34,152)
|
|
(28,489)
|
|
Repurchase of common
stock
|
(183,290)
|
|
(19,208)
|
|
Cash paid for deferred
financing costs
|
(414)
|
|
–
|
|
Net
cash used in financing activities
|
(210,664)
|
|
(41,394)
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
44,224
|
|
(22,348)
|
|
CASH AND CASH
EQUIVALENTS, Beginning of period
|
14,695
|
|
37,043
|
|
CASH AND CASH
EQUIVALENTS, End of period
|
$58,919
|
|
$ 14,695
|
|
|
|
|
|
|
|
|
|
|
SEC Regulation G - The Company reports its consolidated
financial results in accordance with generally accepted accounting
principles (GAAP). However, to supplement these consolidated
financial results, management believes that certain non-GAAP
operating results, which exclude certain non-recurring charges
including acquisition and integration costs, may provide a more
meaningful measure on which to compare the Company's results of
operations between periods. The Company believes these
non-GAAP results provide useful information to both management and
investors by excluding certain expenses that impact the
comparability of the results. A reconciliation of net income
and earnings per diluted share on a GAAP basis to net income and
earnings per diluted share on a non-GAAP basis is presented in the
table below:
|
|
Chico's FAS,
Inc.
Non-GAAP to
GAAP Reconciliation of Net Income and Diluted EPS
(in
thousands, except per share amounts)
|
|
|
|
Fifty-Two
Weeks Ended
|
|
Net income:
|
|
January 28,
2012
|
|
|
|
|
|
GAAP basis
|
|
$ 140,874
|
|
Add: Impact of acquisition and
integration costs, net of tax
|
|
3,574
|
|
Non-GAAP adjusted
basis
|
|
$ 144,448
|
|
|
|
|
|
Net income per diluted
share:
|
|
|
|
|
|
|
|
GAAP basis
|
|
$
0.82
|
|
Add: Impact of acquisition and
integration costs, net of tax
|
|
0.02
|
|
Non-GAAP adjusted
basis
|
|
$
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's FAS,
Inc.
|
|
Boutique
Count and Square Footage
|
|
As of
January 28, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
New
|
|
|
|
As
of
|
|
|
|
|
|
|
1/29/2011
|
|
Stores
|
|
Closures
|
|
1/28/2012
|
|
|
|
Store count:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
|
|
597
|
|
16
|
|
(12)
|
|
601
|
|
|
|
Chico's outlets
|
|
|
63
|
|
20
|
|
–
|
|
83
|
|
|
|
WH|BM frontline
boutiques
|
|
|
342
|
|
31
|
|
(9)
|
|
364
|
|
|
|
WH|BM outlets
|
|
|
21
|
|
6
|
|
–
|
|
27
|
|
|
|
Soma frontline
boutiques
|
|
|
120
|
|
52
|
|
(8)
|
|
164
|
|
|
|
Soma outlets
|
|
|
8
|
|
12
|
|
(3)
|
|
17
|
|
|
|
Total Chico's FAS,
Inc.
|
|
|
1,151
|
|
137
|
|
(32)
|
|
1,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remodels/
|
|
|
|
|
|
|
|
|
|
|
|
|
Relos
and
|
|
|
|
|
|
|
As
of
|
|
New
|
|
|
|
change
in
|
|
As
of
|
|
|
|
|
1/29/2011
|
|
Stores
|
|
Closures
|
|
SSF
|
|
1/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net selling square footage
(SSF):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
|
|
1,606,394
|
|
42,107
|
|
(28,686)
|
|
11,859
|
|
1,631,674
|
|
Chico's outlets
|
|
|
166,123
|
|
47,630
|
|
–
|
|
(278)
|
|
213,475
|
|
WH|BM frontline
boutiques
|
|
|
710,480
|
|
71,132
|
|
(19,903)
|
|
6,733
|
|
768,442
|
|
WH|BM outlets
|
|
|
40,421
|
|
12,492
|
|
–
|
|
350
|
|
53,263
|
|
Soma frontline
boutiques
|
|
|
246,688
|
|
104,661
|
|
(18,521)
|
|
(5,970)
|
|
326,858
|
|
Soma outlets
|
|
|
14,817
|
|
23,969
|
|
(6,178)
|
|
68
|
|
32,676
|
|
Total Chico's FAS,
Inc.
|
|
|
2,784,923
|
|
301,991
|
|
(73,288)
|
|
12,762
|
|
3,026,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Contact:
Todd Vogensen
Vice President-Investor Relations
Chico's FAS, Inc.
(239) 346-4199
SOURCE Chico's FAS, Inc.