FORT MYERS, Fla., Feb. 26, 2015 /PRNewswire/ -- Chico's FAS,
Inc. (NYSE: CHS) today announced its financial results for the
fiscal 2014 fourth quarter and fiscal year ended January 31,
2015 and a series of new capital allocation and cost reduction
initiatives aligned with the Company's ongoing efforts to drive
value creation.
David Dyer, President and Chief
Executive Officer, Chico's FAS, said, "Overall, we are pleased with our fourth
quarter performance. The actions we have taken delivered positive
comparable sales across all brands, an increase in gross margin
dollars and lower inventory levels. While the overall apparel
retail environment remains challenging, we expect the new capital
allocation and cost reduction initiatives announced today will
further strengthen Chico's FAS and its brands."
For the thirteen weeks ended January 31, 2015 ("the fourth
quarter"), the Company reported adjusted net income of $7.5 million compared to adjusted net income of
$5.9 million for the thirteen weeks
ended February 1, 2014, and fourth quarter 2014 adjusted
earnings per diluted share of $0.05
compared to adjusted earnings per diluted share of $0.04 in last year's fourth quarter. The fourth
quarter adjusted results exclude EPS charges of $0.26 in 2014 and $0.04 in 2013, primarily related to Boston Proper
non-cash goodwill and trade name impairment, as well as cost
reduction and restructuring initiatives (the "Charges"), as
presented in the accompanying GAAP to non-GAAP reconciliation.
Including the impact of the Charges, the Company reported a fourth
quarter 2014 net loss of $31.8 million, or $0.21 per diluted share compared to a fourth
quarter 2013 net loss of $0.3
million, or $0.00 per diluted
share.
For the fifty-two weeks ended January 31, 2015 ("fiscal
2014"), the Company reported adjusted net income of $104.0 million compared to adjusted net income of
$137.0 million for the fifty-two
weeks ended February 1, 2014 (fiscal 2013), and adjusted
earnings per diluted share of $0.68
compared to adjusted earnings per diluted share of $0.85 in fiscal 2013. The adjusted results
exclude EPS charges of $0.26 in 2014
and $0.44 in 2013, as presented in
the accompanying GAAP to non-GAAP reconciliation. Including the
impact of the Charges, the Company reported fiscal 2014 net income
of $64.6 million, or $0.42 per diluted share compared to fiscal 2013
net income of $65.9 million, or
$0.41 per diluted share.
Net Sales
For the fourth quarter, net sales were $656.9 million, an increase of 7.6% compared to
$610.2 million in last year's fourth
quarter, primarily reflecting 75 net new stores for a square
footage increase of 4.5% and a 4.3% increase in comparable sales.
The 4.3% increase in comparable sales for the fourth quarter was
following a 3.4% decrease in last year's fourth quarter, and
reflected an increase in transaction count and average dollar
sale.
For fiscal 2014, net sales were $2.675
billion, an increase of 3.4% compared to $2.586 billion in fiscal 2013, primarily
reflecting 75 net new stores for a square footage increase of 4.5%.
Comparable sales were flat for 2014 compared to a 1.8% decrease in
2013, and reflected an increase in transaction count offset by a
decrease in average dollar sale.
Comparable Sales
|
|
Fifty-Two Weeks
Ended
|
|
Thirteen Weeks
Ended
|
|
January 31,
2015
|
|
February 1,
2014
|
|
January 31,
2015
|
|
February 1,
2014
|
|
Comp
%
|
|
Comp
%
|
|
Comp
%
|
|
Comp
%
|
Chico's
|
(0.5)
|
%
|
|
(4.1)
|
%
|
|
1.2
|
%
|
|
(3.0)
|
%
|
White House | Black
Market
|
(1.7)
|
%
|
|
0.0
|
%
|
|
5.4
|
%
|
|
(6.6)
|
%
|
Soma
Intimates
|
8.0
|
%
|
|
5.8
|
%
|
|
13.7
|
%
|
|
5.3
|
%
|
Total
Company
|
0.0
|
%
|
|
(1.8)
|
%
|
|
4.3
|
%
|
|
(3.4)
|
%
|
|
Gross Margin
For the fourth quarter, gross margin was $328.2 million compared to $309.6 million in last year's fourth quarter.
Gross margin was 50.0% of net sales, a 70 basis point decrease from
last year's fourth quarter, primarily reflecting increased
promotional activity to sell through product delayed by port issues
and seasonal merchandise as well as an impairment charge related to
non-go-forward inventory. We expect the impact of port delays to
continue in fiscal 2015.
Selling, General and Administrative Expenses
For the fourth quarter, selling, general and administrative
expenses ("SG&A") were $317.8
million compared to $302.4
million in last year's fourth quarter. SG&A was 48.4% of
net sales, a 110 basis point improvement from last year's fourth
quarter, primarily reflecting sales leverage of store expenses and
National Store Support Center costs, partially offset by the impact
of investment spending on strategic initiatives.
Impairment Charges
In the fourth quarter of 2014, the Company determined that
certain Boston Proper intangibles were impaired and
recorded $30.1 million in pre-tax, non-cash goodwill and
trade name impairment charges. These impairment charges were the
result of sales and margin declines in the Boston Proper brand due
to issues with its merchandising and marketing effectiveness.
On an after-tax basis, the fourth quarter impairment charge impact
was $28.5 million, or $0.19 per diluted share. The $30.1
million Boston Proper impairment charges included $25.8
million related to goodwill impairment and $4.3
million related to the trade name.
Restructuring and Other Charges
For the fourth quarter, the Company recorded pre-tax
restructuring and other charges of $16.7
million primarily related to severance, store closures and
other impairment charges associated with actions announced today.
On an after-tax basis, the fourth quarter restructuring and other
charges impact was $10.1 million, or
$0.07 per diluted share.
Income Tax Provision
For the fourth quarter, the effective tax rate was 12.6%
compared to an effective tax rate of 104.7% in last year's fourth
quarter. The effective tax rates include the impact of the Charges
presented in the accompanying GAAP to Non-GAAP Reconciliation.
Excluding the tax impact of the Charges, the 2014 fourth quarter
effective tax rate would have been 35.4%, primarily reflecting
favorable tax settlements and credits, including the impact of
favorable legislation passed in the fourth quarter of 2014, offset
by the impact of international operations. Excluding the tax
impact of the Charges, the 2013 fourth quarter effective tax rate
would have been 20.0%, primarily reflecting favorable tax
settlements and credits in 2013.
Inventories
At the end of the fourth quarter of 2014, total inventories per
selling square foot decreased 5.7%, primarily reflecting higher
sales volume, more conservative receipt planning and a favorable
shift in the timing of the Chinese New
Year. Total inventories decreased $3.0 million compared to the fourth quarter of
last year.
Assets Held for Sale
At the end of the fourth quarter, current assets included
$16.8 million in assets held for
sale, comprised of vacant land.
New Capital Allocation and Cost Reduction Initiatives
The Company remains committed to returning excess cash to
shareholders and announced today that it expects to execute a
$250 million accelerated share
repurchase agreement in the first quarter of fiscal 2015 to be
financed through a combination of cash and debt. At the end of the
fourth quarter, the Company had $290
million remaining under its existing authorization.
The Company expects capital expenditures of approximately
$100 million in fiscal 2015,
inclusive of approximately $30
million related to the roll-out of new Point-of-Sale system
applications, including mobile technology, to all stores. This
level of capital investment represents a 29% reduction to the
Company's three-year average. For fiscal 2015, the Company plans to
open approximately 40 new stores, significantly less than the
openings of 125 stores in 2012, 135 stores in 2013, and 109 stores
in 2014.
The Company has also determined to increase the rate of domestic
store closures to improve the overall productivity of its store
fleet. Under this plan, the Company expects to close approximately
120 stores starting in fiscal 2015 through 2017. These 120 store
closings are expected to ultimately result in expense savings of
approximately $55.2 million upon
completion. In the fourth quarter of 2014, the Company
recorded pre-tax impairment charges associated with the accelerated
closures of approximately $5.3
million. For fiscal 2015, the Company plans to close
approximately 35 stores.
The Company today announced an organizational realignment to
ensure that resources are better aligned with long-term growth
initiatives, including omni-channel. The changes resulted in
the elimination of approximately 240 existing positions, which is
expected to result in approximately $38
million of annualized savings. The corporate organizational
realignment resulted in a 12% reduction of the Company's
headquarters and field management employee base. In the fourth
quarter of 2014, the Company recorded pre-tax restructuring charges
related to headcount reductions, including severance and other
charges, of approximately $8.2
million.
Todd Vogensen, Executive Vice
President and Chief Financial Officer, Chico's FAS, said, "The changes to the Company's capital
allocation and cost reductions announced today were carefully
considered to ensure that we continue to operate from a position of
strength and drive profitable growth and value creation."
2015 Full-Year Outlook
For the full year of fiscal 2015, the Company is anticipating a
positive, low-single digit comparable sales increase. The
Company expects improvement in gross margin rate in 2015 compared
to the prior year. We expect slight deleverage in SG&A costs,
driven primarily by the 109 new stores opened in fiscal 2014,
approximately 40 previously committed to new stores in fiscal 2015,
and a return to a more historical level of incentive compensation.
In fiscal 2015, the Company will continue to incur charges related
to the new capital allocation and cost reduction initiatives
announced today. Total inventories are expected to grow at a slower
rate than total company sales growth.
ABOUT CHICO'S FAS, INC.
The Company, through its brands – Chico's, White House | Black
Market, Soma Intimates, and Boston Proper, is a leading
omni-channel specialty retailer of women's private branded,
sophisticated, casual-to-dressy clothing, intimates, complementary
accessories, and other non-clothing items.
As of January 31, 2015, the Company operated 1,547 stores
in the US and Canada and sold
merchandise through franchise locations in Mexico. The Company's merchandise is also
available at www.chicos.com, www.whbm.com, www.soma.com, and
www.bostonproper.com. For more detailed information on Chico's FAS,
Inc., please go to our corporate website at www.chicosfas.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.
(Financial Tables Follow)
Executive Contact:
Dave
Slater
Vice President – Investor Relations
Chico's FAS, Inc.
(239) 346-4199
Chico's FAS, Inc.
and Subsidiaries
Condensed
Consolidated Statements of Income (Loss)
(Unaudited)
(in thousands, except
per share amounts)
|
|
|
Fifty-Two Weeks
Ended
|
|
Thirteen Weeks
Ended
|
|
January 31,
2015
|
|
February 1,
2014
|
|
January 31,
2015
|
|
February 1,
2014
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
Net
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's
|
$
|
1,379,863
|
|
|
51.6
|
%
|
|
$
|
1,362,641
|
|
|
52.7
|
%
|
|
$
|
310,030
|
|
|
47.2
|
%
|
|
$
|
299,549
|
|
|
49.0
|
%
|
White House | Black
Market
|
888,371
|
|
|
33.2
|
%
|
|
858,972
|
|
|
33.2
|
%
|
|
232,732
|
|
|
35.4
|
%
|
|
215,284
|
|
|
35.3
|
%
|
Soma
Intimates
|
311,174
|
|
|
11.6
|
%
|
|
267,506
|
|
|
10.3
|
%
|
|
90,768
|
|
|
13.8
|
%
|
|
75,384
|
|
|
12.4
|
%
|
Boston
Proper
|
95,803
|
|
|
3.6
|
%
|
|
96,918
|
|
|
3.8
|
%
|
|
23,377
|
|
|
3.6
|
%
|
|
20,016
|
|
|
3.3
|
%
|
Total net
sales
|
2,675,211
|
|
|
100.0
|
%
|
|
2,586,037
|
|
|
100.0
|
%
|
|
656,907
|
|
|
100.0
|
%
|
|
610,233
|
|
|
100.0
|
%
|
Cost of goods
sold
|
1,248,889
|
|
|
46.7
|
%
|
|
1,169,406
|
|
|
45.2
|
%
|
|
328,741
|
|
|
50.0
|
%
|
|
300,598
|
|
|
49.3
|
%
|
Gross
margin
|
1,426,322
|
|
|
53.3
|
%
|
|
1,416,631
|
|
|
54.8
|
%
|
|
328,166
|
|
|
50.0
|
%
|
|
309,635
|
|
|
50.7
|
%
|
Selling, general and
administrative
expenses
|
1,263,134
|
|
|
47.2
|
%
|
|
1,202,068
|
|
|
46.5
|
%
|
|
317,774
|
|
|
48.4
|
%
|
|
302,378
|
|
|
49.5
|
%
|
Goodwill and trade
name impairment
charges
|
30,100
|
|
|
1.2
|
%
|
|
72,466
|
|
|
2.8
|
%
|
|
30,100
|
|
|
4.6
|
%
|
|
—
|
|
|
0.0
|
%
|
Restructuring and
other charges
|
16,745
|
|
|
0.6
|
%
|
|
—
|
|
|
0.0
|
%
|
|
16,745
|
|
|
2.5
|
%
|
|
—
|
|
|
0.0
|
%
|
Acquisition and
integration costs
|
—
|
|
|
0.0
|
%
|
|
914
|
|
|
0.0
|
%
|
|
—
|
|
|
0.0
|
%
|
|
—
|
|
|
0.0
|
%
|
Income (loss) from
operations
|
116,343
|
|
|
4.3
|
%
|
|
141,183
|
|
|
5.5
|
%
|
|
(36,453)
|
|
|
(5.5)
|
%
|
|
7,257
|
|
|
1.2
|
%
|
Interest income,
net
|
98
|
|
|
0.0
|
%
|
|
500
|
|
|
0.0
|
%
|
|
23
|
|
|
0.0
|
%
|
|
95
|
|
|
0.0
|
%
|
Income (loss)
before income taxes
|
116,441
|
|
|
4.3
|
%
|
|
141,683
|
|
|
5.5
|
%
|
|
(36,430)
|
|
|
(5.5)
|
%
|
|
7,352
|
|
|
1.2
|
%
|
Income tax
provision
|
51,800
|
|
|
1.9
|
%
|
|
75,800
|
|
|
3.0
|
%
|
|
(4,600)
|
|
|
(0.7)
|
%
|
|
7,700
|
|
|
1.3
|
%
|
Net income
(loss)
|
$
|
64,641
|
|
|
2.4
|
%
|
|
$
|
65,883
|
|
|
2.5
|
%
|
|
$
|
(31,830)
|
|
|
(4.8)
|
%
|
|
$
|
(348)
|
|
|
(0.1)
|
%
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share-basic
|
$
|
0.42
|
|
|
|
|
|
$
|
0.41
|
|
|
|
|
|
$
|
(0.21)
|
|
|
|
|
|
$
|
0.00
|
|
|
|
|
Net income (loss) per
common and
common
equivalent share–diluted
|
$
|
0.42
|
|
|
|
|
|
$
|
0.41
|
|
|
|
|
|
$
|
(0.21)
|
|
|
|
|
|
$
|
0.00
|
|
|
|
|
Weighted average
common shares
outstanding–basic
|
148,622
|
|
|
|
|
|
155,048
|
|
|
|
|
|
148,754
|
|
|
|
|
|
150,291
|
|
|
|
|
Weighted average
common and common
equivalent
shares outstanding–diluted
|
149,126
|
|
|
|
|
|
155,995
|
|
|
|
|
|
148,754
|
|
|
|
|
|
150,291
|
|
|
|
|
Dividends declared
per share
|
$
|
0.30
|
|
|
|
|
|
$
|
0.24
|
|
|
|
|
|
$
|
0.075
|
|
|
|
|
|
$
|
0.075
|
|
|
|
|
Chico's FAS, Inc.
and Subsidiaries
Condensed
Consolidated Balance Sheets
(Unaudited)
(in
thousands)
|
|
|
January 31,
2015
|
|
February 1,
2014
|
|
|
|
|
|
|
ASSETS
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
133,351
|
|
|
$
|
36,444
|
|
Marketable
securities, at fair value
|
126,561
|
|
|
116,002
|
|
Inventories
|
235,159
|
|
|
238,145
|
|
Prepaid expenses and
other current assets
|
51,088
|
|
|
50,698
|
|
Assets held for
sale
|
16,800
|
|
|
—
|
|
Total Current
Assets
|
562,959
|
|
|
441,289
|
|
Property and
Equipment, net
|
606,147
|
|
|
631,050
|
|
Other
Assets:
|
|
|
|
|
|
Goodwill
|
145,627
|
|
|
171,427
|
|
Other intangible
assets, net
|
109,538
|
|
|
118,196
|
|
Other assets,
net
|
14,310
|
|
|
9,229
|
|
Total Other
Assets
|
269,475
|
|
|
298,852
|
|
|
$
|
1,438,581
|
|
|
$
|
1,371,191
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
144,534
|
|
|
$
|
131,254
|
|
Other current and
deferred liabilities
|
158,396
|
|
|
142,073
|
|
Total Current
Liabilities
|
302,930
|
|
|
273,327
|
|
Noncurrent
Liabilities:
|
|
|
|
|
|
Deferred
liabilities
|
142,371
|
|
|
138,874
|
|
Deferred
taxes
|
49,659
|
|
|
49,887
|
|
Total Noncurrent
Liabilities
|
192,030
|
|
|
188,761
|
|
Stockholders'
Equity:
|
|
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
1,529
|
|
|
1,522
|
|
Additional paid-in
capital
|
407,275
|
|
|
382,088
|
|
Retained
earnings
|
534,255
|
|
|
525,381
|
|
Accumulated other
comprehensive
income
|
562
|
|
|
112
|
|
Total
Stockholders' Equity
|
943,621
|
|
|
909,103
|
|
|
$
|
1,438,581
|
|
|
$
|
1,371,191
|
|
Chico's FAS, Inc.
and Subsidiaries
Condensed
Consolidated Cash Flow Statements
(Unaudited)
(in
thousands)
|
|
|
Fifty-Two Weeks
Ended
|
|
January 31,
2015
|
|
February 1,
2014
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
Net income
|
$
|
64,641
|
|
|
$
|
65,883
|
|
Adjustments to
reconcile net income to net cash provided by operating activities
—
|
|
|
|
|
|
Goodwill and trade
name impairment charges, pre-tax
|
30,100
|
|
|
72,466
|
|
Depreciation and
amortization
|
122,269
|
|
|
118,303
|
|
Deferred tax
(benefit) expense
|
(9,598)
|
|
|
10,231
|
|
Stock-based
compensation expense
|
26,487
|
|
|
27,145
|
|
Excess tax benefit
from stock-based compensation
|
(1,981)
|
|
|
(2,483)
|
|
Deferred rent and
lease credits
|
(20,017)
|
|
|
(18,863)
|
|
Loss on disposal and
impairment of property and equipment
|
10,085
|
|
|
1,736
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Inventories
|
2,986
|
|
|
(31,296)
|
|
Prepaid expenses and
other assets
|
53
|
|
|
(2,767)
|
|
Accounts
payable
|
13,280
|
|
|
1,867
|
|
Accrued and other
liabilities
|
44,178
|
|
|
(5,540)
|
|
Net cash provided by
operating activities
|
282,483
|
|
|
236,682
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
Purchases of
marketable securities
|
(128,696)
|
|
|
(96,374)
|
|
Proceeds from sale of
marketable securities
|
118,062
|
|
|
252,768
|
|
Purchases of property
and equipment, net
|
(119,817)
|
|
|
(138,510)
|
|
Net cash (used in)
provided by investing activities
|
(130,451)
|
|
|
17,884
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
6,268
|
|
|
12,395
|
|
Excess tax benefit
from stock-based compensation
|
1,981
|
|
|
2,483
|
|
Dividends
paid
|
(45,773)
|
|
|
(38,255)
|
|
Repurchase of common
stock
|
(18,124)
|
|
|
(251,646)
|
|
Net cash used in
financing activities
|
(55,648)
|
|
|
(275,023)
|
|
Effects of exchange
rate changes on cash and cash equivalents
|
523
|
|
|
42
|
|
Net increase
(decrease) in cash and cash equivalents
|
96,907
|
|
|
(20,415)
|
|
Cash and Cash
Equivalents, Beginning of period
|
36,444
|
|
|
56,859
|
|
Cash and Cash
Equivalents, End of period
|
$
|
133,351
|
|
|
$
|
36,444
|
|
Supplemental Detail on Earnings Per Share Calculation
In accordance with accounting guidance, unvested share-based
payment awards that include non-forfeitable rights to dividends,
whether paid or unpaid, are considered participating
securities. As a result, such awards are required to be
included in the calculation of earnings per common share pursuant
to the "two-class" method. For the Company, participating
securities are composed entirely of unvested restricted stock
awards and performance-based restricted stock units ("PSUs") that
have met their relevant performance criteria.
Earnings per share is determined using the two-class method, as
it is more dilutive than the treasury stock method. Basic
earnings per share is computed by dividing net income available to
common stockholders by the weighted-average number of common shares
outstanding during the period. Diluted earnings per share
reflects the dilutive effect of potential common shares from
non-participating securities such as stock options and PSUs. For
the fifty-two weeks and thirteen weeks ended January 31, 2015
and February 1, 2014, potential common shares were excluded
from the computation of diluted EPS to the extent they were
antidilutive.
The following unaudited table sets forth the computation of
basic and diluted earnings per share shown on the face of the
accompanying condensed consolidated statements of income (loss) (in
thousands, except per share amounts):
|
|
Fifty-Two Weeks
Ended
|
|
Thirteen Weeks
Ended
|
|
January 31,
2015
|
|
February 1,
2014
|
|
January 31,
2015
|
|
February 1,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
64,641
|
|
|
$
|
65,883
|
|
|
$
|
(31,830)
|
|
|
$
|
(348)
|
|
Net income and
dividends declared allocated to participating
securities
|
(1,697)
|
|
|
(1,746)
|
|
|
—
|
|
|
—
|
|
Net income (loss)
available to common shareholders
|
$
|
62,944
|
|
|
$
|
64,137
|
|
|
$
|
(31,830)
|
|
|
$
|
(348)
|
|
Denominator
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding – basic
|
148,622
|
|
|
155,048
|
|
|
148,754
|
|
|
150,291
|
|
Dilutive effect of
non-participating securities
|
504
|
|
|
947
|
|
|
—
|
|
|
—
|
|
Weighted average
common and common equivalent shares
outstanding –
diluted
|
149,126
|
|
|
155,995
|
|
|
148,754
|
|
|
150,291
|
|
Net income (loss) per
common share*:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.42
|
|
|
$
|
0.41
|
|
|
$
|
(0.21)
|
|
|
$
|
0.00
|
|
Diluted
|
$
|
0.42
|
|
|
$
|
0.41
|
|
|
$
|
(0.21)
|
|
|
$
|
0.00
|
|
|
*Due to the differences between quarterly and year-to-date
weighted average share counts and the effect of quarterly rounding
to the nearest cent per diluted share, the year-to-date calculation
of GAAP and non-GAAP diluted EPS may not equal the sum of the
quarters.
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
results, which exclude certain charges, 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
(loss) 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.
and Subsidiaries
|
GAAP to Non-GAAP
Reconciliation of Net Income (Loss) and Diluted EPS
|
(Unaudited)
|
(in thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-Two Weeks
Ended
|
|
Thirteen Weeks
Ended
|
|
|
January 31,
2015
|
|
February 1,
2014
|
|
January 31,
2015
|
|
February 1,
2014
|
Net income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
basis
|
|
$
|
64,641
|
|
|
$
|
65,883
|
|
|
$
|
(31,830)
|
|
|
$
|
(348)
|
|
Impact of goodwill
and trade name impairment charges,
net of
tax
|
|
28,474
|
|
|
70,499
|
|
|
28,474
|
|
|
6,233
|
|
Impact of
restructuring and other charges, net of tax
|
|
10,137
|
|
|
—
|
|
|
10,137
|
|
|
—
|
|
Impact of inventory
impairment, net of tax
|
|
717
|
|
|
—
|
|
|
717
|
|
|
—
|
|
Impact of acquisition
and integration costs, net of tax
|
|
—
|
|
|
577
|
|
|
—
|
|
|
—
|
|
Non-GAAP adjusted
basis
|
|
$
|
103,969
|
|
|
$
|
136,959
|
|
|
$
|
7,498
|
|
|
$
|
5,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per diluted share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
basis
|
|
$
|
0.42
|
|
|
$
|
0.41
|
|
|
$
|
(0.21)
|
|
|
$
|
0.00
|
|
Impact of goodwill
and trade name impairment charges,
net of
tax
|
|
0.19
|
|
|
0.44
|
|
|
0.19
|
|
|
0.04
|
|
Impact of
restructuring and other charges, net of tax
|
|
0.07
|
|
|
0.00
|
|
|
0.07
|
|
|
0.00
|
|
Impact of inventory
impairment, net of tax
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
Impact of acquisition
and integration costs, net of tax
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
Non-GAAP adjusted
basis
|
|
$
|
0.68
|
|
|
$
|
0.85
|
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
Chico's FAS, Inc.
and Subsidiaries
|
Store Count and
Square Footage
|
Thirteen Weeks Ended
January 31, 2015
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
11/1/14
|
|
New Stores
|
|
Closures
|
|
As of
1/31/15
|
|
|
|
Store
count:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
621
|
|
|
1
|
|
|
(9)
|
|
|
613
|
|
|
|
|
Chico's
outlets
|
118
|
|
|
1
|
|
|
(1)
|
|
|
118
|
|
|
|
|
Chico's
Canada
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
|
|
WH|BM frontline
boutiques
|
446
|
|
|
1
|
|
|
(6)
|
|
|
441
|
|
|
|
|
WH|BM
outlets
|
67
|
|
|
1
|
|
|
—
|
|
|
68
|
|
|
|
|
WH|BM
Canada
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
|
|
Soma frontline
boutiques
|
263
|
|
|
2
|
|
|
(2)
|
|
|
263
|
|
|
|
|
Soma
outlets
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
|
|
Boston Proper
frontline boutiques
|
17
|
|
|
2
|
|
|
—
|
|
|
19
|
|
|
|
|
Total Chico's FAS,
Inc.
|
1,557
|
|
|
8
|
|
|
(18)
|
|
|
1,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
11/1/14
|
|
New Stores
|
|
Closures
|
|
Other
changes in
SSF
|
|
As of
1/31/15
|
Net selling square
footage (SSF):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
1,694,688
|
|
|
2,023
|
|
|
(22,071)
|
|
|
—
|
|
|
1,674,640
|
|
Chico's
outlets
|
296,180
|
|
|
2,268
|
|
|
(2,848)
|
|
|
—
|
|
|
295,600
|
|
Chico's
Canada
|
7,313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,313
|
|
WH|BM frontline
boutiques
|
1,018,600
|
|
|
2,818
|
|
|
(11,351)
|
|
|
175
|
|
|
1,010,242
|
|
WH|BM
outlets
|
139,687
|
|
|
2,213
|
|
|
—
|
|
|
—
|
|
|
141,900
|
|
WH|BM
Canada
|
12,460
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,460
|
|
Soma frontline
boutiques
|
497,109
|
|
|
3,580
|
|
|
(4,031)
|
|
|
1,984
|
|
|
498,642
|
|
Soma
outlets
|
31,672
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,672
|
|
Boston Proper
frontline boutiques
|
29,147
|
|
|
3,888
|
|
|
—
|
|
|
—
|
|
|
33,035
|
|
Total Chico's FAS,
Inc.
|
3,726,856
|
|
|
16,790
|
|
|
(40,301)
|
|
|
2,159
|
|
|
3,705,504
|
|
|
As of January 31, 2015 the Company also sold merchandise
through 19 international franchise locations.
Chico's FAS, Inc.
and Subsidiaries
|
Store Count and
Square Footage
|
Fifty-Two Weeks Ended
January 31, 2015
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
2/1/14
|
|
New Stores
|
|
Closures
|
|
As of
1/31/15
|
|
|
|
Store
count:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
611
|
|
|
15
|
|
|
(13)
|
|
|
613
|
|
|
|
|
Chico's
outlets
|
110
|
|
|
11
|
|
|
(3)
|
|
|
118
|
|
|
|
|
Chico's
Canada
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
|
|
WH|BM frontline
boutiques
|
436
|
|
|
18
|
|
|
(13)
|
|
|
441
|
|
|
|
|
WH|BM
outlets
|
59
|
|
|
9
|
|
|
—
|
|
|
68
|
|
|
|
|
WH|BM
Canada
|
3
|
|
|
2
|
|
|
—
|
|
|
5
|
|
|
|
|
Soma frontline
boutiques
|
232
|
|
|
35
|
|
|
(4)
|
|
|
263
|
|
|
|
|
Soma
outlets
|
17
|
|
|
1
|
|
|
(1)
|
|
|
17
|
|
|
|
|
Boston Proper
frontline boutiques
|
4
|
|
|
15
|
|
|
—
|
|
|
19
|
|
|
|
|
Total Chico's FAS,
Inc.
|
1,472
|
|
|
109
|
|
|
(34)
|
|
|
1,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
2/1/14
|
|
New Stores
|
|
Closures
|
|
Other
changes in
SSF
|
|
As of
1/31/15
|
Net selling square
footage (SSF):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
1,672,225
|
|
|
38,269
|
|
|
(33,013)
|
|
|
(2,841)
|
|
|
1,674,640
|
|
Chico's
outlets
|
278,223
|
|
|
26,562
|
|
|
(9,185)
|
|
|
—
|
|
|
295,600
|
|
Chico's
Canada
|
—
|
|
|
7,313
|
|
|
—
|
|
|
—
|
|
|
7,313
|
|
WH|BM frontline
boutiques
|
986,708
|
|
|
46,429
|
|
|
(26,689)
|
|
|
3,794
|
|
|
1,010,242
|
|
WH|BM
outlets
|
121,565
|
|
|
20,335
|
|
|
—
|
|
|
—
|
|
|
141,900
|
|
WH|BM
Canada
|
7,987
|
|
|
4,473
|
|
|
—
|
|
|
—
|
|
|
12,460
|
|
Soma frontline
boutiques
|
441,387
|
|
|
63,991
|
|
|
(7,638)
|
|
|
902
|
|
|
498,642
|
|
Soma
outlets
|
32,682
|
|
|
1,445
|
|
|
(2,346)
|
|
|
(109)
|
|
|
31,672
|
|
Boston Proper
frontline boutiques
|
6,003
|
|
|
27,032
|
|
|
—
|
|
|
—
|
|
|
33,035
|
|
Total Chico's FAS,
Inc.
|
3,546,780
|
|
|
235,849
|
|
|
(78,871)
|
|
|
1,746
|
|
|
3,705,504
|
|
|
As of January 31, 2015 the Company also sold merchandise
through 19 international franchise locations.
Logo -
http://photos.prnewswire.com/prnh/20110920/FL71045LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/chicos-fas-inc-reports-fourth-quarter-results-new-capital-allocation-and-cost-reduction-initiatives-300041484.html
SOURCE Chico's FAS, Inc.