Chico's FAS Inc.'s first-quarter profit dropped 18% on
restructuring charges and lower sales at existing locations.
The woman's retailer earlier this year unveiled plans to reduce
apital spending, accelerate store closures and cut jobs after
private-equity firm Sycamore Partners abandoned its attempt to take
Chico's private.
But some industry watchers speculated the planned retirement of
Chief Executive David Dyer, which was announced last week, might
open the door to talks with potential suitors. Mr. Dyer plans to
retire next spring and remain at the helm until a successor is
named.
For the period ended March 31, Chico's reported a profit of
$32.5 million, or 22 cents a share, down from year-earlier earnings
of $39.9 million, or 26 cents a share.
Excluding $14.9 million in restructuring-related and impairment
charges, earnings rose to 28 cents a share.
Revenue edged 1.7% higher to $693.3 million. But sales at stores
open at least a year slipped 0.1% and reflected approximately flat
average dollar sale and transaction count, Chico's said.
Analysts were looking for 28 cents in earnings per share and
$712.9 million in revenue.
Chico's namesake brand, its biggest, posted a 1% decrease in
sales. Sales in the White House, Black Market segment rose 3.4%,
while sales in the Soma Intimates brand jumped 13%.
Gross margin expanded to 57.1% from 56.2%.
Expenses rose 2.9% to $328.2 million. The effect of lower
promotional activity was partially offset by the impact of product
delays stemming from West Coast port issues, the company said.
Shares in the company, up 3% this year, were inactive during
premarket trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Access Investor Kit for Chico's FAS, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US1686151028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires