FORT MYERS, Fla., Jan. 8, 2018 /PRNewswire/ -- Chico's FAS,
Inc. (NYSE: CHS) (the "Company") today announced that the Company
is updating its outlook for the fiscal 2017 fourth quarter ending
February 3, 2018.
Based on results to date, the Company anticipates fourth quarter
total comparable sales in the negative 5% to negative 7% range, an
improvement on its previous outlook of negative high single-digits.
As previously announced, approximately $30
million in sales from the 53rd week of fiscal
2017 are not included in the comparable sales calculation for the
Company's outlook.
The Company continues to expect fourth quarter gross margin rate
to be approximately flat to up slightly, in line with its previous
outlook. SG&A expenses for the fourth quarter are
expected to be approximately flat to last year, after incorporating
costs from the 53rd week.
The Company will release its full fourth quarter and fiscal 2017
results on February 28, 2018 and will
host a conference call to review financial results on that date.
Details for the conference call will be announced at a later
time.
U.S. Tax Reform
The Company has completed a preliminary analysis of the impact
of the Tax Cuts and Jobs Act of 2017 signed into law on
December 22, 2017 on its business.
The law includes significant changes to the U.S. corporate income
tax system, including a Federal corporate rate reduction from 35%
to 21% and limitations on the deductibility of interest expense and
executive compensation. At this time, the Company anticipates that
the fiscal 2018 effective tax rate will be in the range of 26% to
28%. This compares to a pre-tax reform expected effective tax rate
of approximately 38%.
ICR Conference
Chico's will participate in the 2018 ICR Conference to be held
at the JW Marriott Orlando Grande Lakes in Orlando, Florida on January 8 - 10, 2018. Management is scheduled to
host a "Fireside Chat" on Monday, January 8,
2018 at 11:30 AM ET, which
will be webcast live and available for 12 months in the Investor
Relations section of the Company's website at
www.chicosfas.com.
About Chico's FAS, Inc.
The Company, through its brands - Chico's, White House Black
Market and Soma, is a leading omni-channel specialty retailer of
women's private branded, sophisticated, casual-to-dressy clothing,
intimates and complementary accessories.
As of October 28, 2017, the Company operated 1,474 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, and www.soma.com. For
more detailed information on Chico's FAS, Inc., please go to our
corporate website at www.chicosfas.com. The information on our
corporate website is not, and shall not be deemed to be, a part of
this press release or incorporated into our federal securities law
filings.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This press release contains "forward-looking statements," within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which reflect our current views with respect to certain
events that could have an effect on our future financial
performance. These statements, including without limitation
statements made regarding anticipated fourth quarter financial
performance and those made in the section entitled "U.S. Tax
Reform" relate to expectations concerning matters that are not
historical fact and may include the words or phrases such as
"will," "should," "expects," "believes," "anticipates," "plans,"
"estimates," "approximately," "our planning assumptions," "future
outlook," and similar expressions. Except for historical
information, matters discussed in such statements are
forward-looking statements. These forward-looking statements are
based largely on information currently available to our management
and on our current expectations, assumptions, plans, estimates,
judgments and projections about our business and our industry, and
are subject to various risks and uncertainties that could cause
actual results to differ materially from historical results or
those currently anticipated. Although we believe our expectations
are based on reasonable estimates and assumptions, we cannot
guarantee their accuracy or our future performance, and there are a
number of known and unknown risks, uncertainties, contingencies,
and other factors (many of which are outside our control) that
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements.
Accordingly, there is no assurance that our expectations will, in
fact, occur or that our estimates or assumptions will be correct,
and we caution investors and all others not to place undue reliance
on such forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to,
changes in the general economic and business environment; changes
in the general or specialty retail or apparel industries; the
availability of quality store sites; the ability to successfully
execute and achieve the expected results of our business
strategies, particular strategic initiatives, and organizational
redesign; the integration of our new management team; changes in
the political environment that create consumer uncertainty;
significant changes to product import and distribution costs (such
as unexpected consolidation in the freight carrier industry, and
the impact associated with our shift to a predominantly FOB
shipping structure); new or increased taxes or tariffs; significant
shifts in consumer behavior; and those other factors described in
Item 1A, "Risk Factors" and in the "Forward-Looking Statements"
disclosure in Item 7. "Management's Discussion and Analysis of
Financial Condition and Results of Operations" of our latest annual
report on Form 10-K. There can be no assurance that the actual
future results, performance, or achievements expressed or implied
by such forward-looking statements will occur. Investors using
forward-looking statements are encouraged to review the Company's
latest annual report on Form 10-K, including management's
discussion and analysis therein, its filings on Form 10-Q, 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. All forward-looking statements that are made or
attributable to us are expressly qualified in their entirety by
this cautionary notice. 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.
Executive Contact:
Julie
Lorigan
Vice President - Investor Relations,
Public Relations and Corporate Communications
Chico's FAS, Inc.
(239) 346-4199
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SOURCE Chico's FAS, Inc.