FORT
MYERS, Fla., Aug. 31,
2022 /PRNewswire/ --
- Delivered diluted EPS of $0.34, 62% over last year's second
quarter
- Grew total year-over-year net sales 18.4% and comparable
sales 19.5%
- Expanded gross margin 300 basis points over last year's
second quarter to 41.4%
- Generated $58 million of
operating income, a 63% increase above last year's second
quarter
Chico's FAS, Inc. (NYSE: CHS) (the "Company" or "Chico's FAS")
today announced its financial results for the thirteen weeks ended
July 30, 2022 (the "second quarter"). The Company also
provided fiscal 2022 third quarter outlook and updated its full
year outlook.
Molly Langenstein, Chico's FAS
Chief Executive Officer and President, commented, "Our strong
momentum continues. We posted another quarter of outstanding
operating income and our highest-ever second quarter EPS, driven by
continued robust digital and store sales growth as well as
significant year-over-year gross margin rate expansion. Our
consistent performance is evidence of the power of our portfolio
and the successful implementation of our strategic
pillars.
"Apparel was again the standout performer for the quarter, with
a 32% comparable sales increase at White House Black
Market®, closely followed by a 30% comparable sales gain
at Chico's®. Customers continued to respond in nearly
every category to our elevated fashion and product.
Soma® posted a second quarter comparable sales decline
of 9%, largely impacted by the continued slowdown of the lounge and
cozy categories, but Soma comparable sales have grown nearly 24%
compared to 2019, demonstrating the overall strength and long-term
power of the brand. Year-over-year, we significantly reduced
promotional activity and achieved more full-priced sales, higher
average unit retail and better productivity for all three
brands."
"Our strong performance and continued momentum show that our
strategy is working," concluded Langenstein. "We are a
customer-led, product-obsessed, digital-first,
operationally-excellent company with a compelling portfolio of
three unique brands, each with their own market share
opportunities. Six months into our three-year strategic growth
plan, we are pleased with the considerable progress to date and are
confident in our ability to achieve our long-term goals."
Business Highlights
The Company's second
quarter highlights include:
- Consistent strong results: Chico's FAS posted
$0.34 net income per diluted share
for the second quarter, driven by strong comparable sales growth
and meaningful gross margin expansion. This performance was 62%
over the thirteen weeks ended July 31,
2021 ("last year's second quarter") and the Company's
highest-ever second quarter net income per diluted share.
- Powerful portfolio outperforming: For the second
quarter, total Chico's FAS net sales grew 18.4% and comparable
sales increased 19.5% versus last year's second quarter, led by the
Company's apparel brands. Chico's and White House Black Market
("WHBM") comparable sales grew 29.7% and 31.9%, respectively, in
the second quarter versus last year's second quarter. Compared to
the thirteen weeks ended August 3,
2019, all three brands delivered double-digit comparable
sales growth.
- Marketing drove traffic and new customers: Chico's FAS
continued to elevate its marketing, focusing more resources on
digital. Strategic marketing efforts continue to drive more
customers to the Company's brands, with total year-over-year
customer count up mid-single digits, spend per customer up over
last year's second quarter and the average age of new customers
continuing to trend younger.
- Newly launched loyalty programs exceeding expectations:
During the second quarter, Chico's FAS launched its new loyalty
programs at Chico's and WHBM. Customer sentiment and redemption
rates are exceeding expectations, and the newly-launched programs
are increasing shopper frequency.
- Gross margin expansion: The second quarter gross margin
rate rose to 41.4%, outperforming last year's second quarter by 300
basis points. Higher average unit retail and full-price sales
combined with inbound freight and occupancy leverage was partially
offset by elevated raw material costs.
- Double-digit operating margin: Income from operations
for the second quarter was $58.2
million, or 10.4% of net sales, driven by strong sales
growth and gross margin expansion, partially offset by planned
increased selling, general and administrative expenses
("SG&A"), including labor and marketing.
Overview of Financial Results
For the second
quarter, the Company reported net income of $42.0 million, or $0.34 per diluted share, compared to net income
of $26.2 million, or $0.21 per diluted share, for last year's second
quarter.
Sales
For the second quarter, net sales were
$558.7 million compared to
$472.1 million in last year's second
quarter. This 18.4% improvement primarily reflects a comparable
sales increase of 19.5%, partially offset by 26 permanent net store
closures since last year's second quarter. The 19.5% comparable
sales improvement was driven by an increase in transaction count
and higher average dollar sale.
|
July 30,
2022
|
|
Thirteen Weeks Ended
(1)
|
|
Twenty-Six Weeks
Ended (1)
|
|
Compared to
Fiscal 2021
|
|
Compared to
Fiscal 2019
|
|
Compared to
Fiscal 2021
|
|
Compared to
Fiscal 2019
|
Chico's
|
29.7 %
|
|
11.4 %
|
|
39.6 %
|
|
6.0 %
|
White House Black
Market
|
31.9
|
|
25.0
|
|
47.0
|
|
19.0
|
Soma
|
(9.2)
|
|
23.7
|
|
(5.7)
|
|
29.9
|
Total
Company
|
19.5
|
|
17.4
|
|
28.9
|
|
14.0
|
|
(1) The Company is not
providing comparable sales figures for the thirteen
and twenty-six weeks ended
July 31, 2021 compared to the thirteen and
twenty-six weeks ended August 1, 2020 as we do not
believe it is a meaningful measure due to the
significant impacts of the pandemic during fiscal
2020.
|
Gross Margin
For the second quarter, gross
margin was $231.5 million, or 41.4%
of net sales, compared to $181.5
million, or 38.4% of net sales, in last year's second
quarter. The 300 basis point improvement in gross margin rate
primarily reflects higher average unit retail and full price sales
combined with inbound freight and occupancy leverage, partially
offset by higher raw material costs.
Selling, General and Administrative
Expenses
For the second quarter, SG&A was
$173.3 million, or 31.0% of net
sales, compared to $145.8 million, or
30.9% of net sales, for last year's second quarter, primarily
reflecting planned marketing investments and elevated labor costs,
partially offset by ongoing expense management.
Income Taxes
For the second quarter, the
effective tax rate was 26.6% compared to 22.7% for last year's
second quarter. The second quarter effective tax rate of 26.6%
primarily reflects the impact of losses in foreign jurisdictions on
which a full valuation allowance is recorded. Last year's second
quarter effective tax rate of 22.7% primarily reflects a change in
the estimate from the first quarter of fiscal 2021 due to an
increase in the Company's projected annual pre-tax income and an
increase in annual projected deferred tax assets on which a full
valuation allowance exists, partially offset by the impact of the
annual loss projected during the first quarter of fiscal 2021.
Cash, Marketable Securities and Debt
At the end
of the second quarter, cash and marketable securities totaled
$172.5 million compared to
$137.2 million at the end of last
year's second quarter. Debt at the end of the second quarter
totaled $99.0 million compared to
$149.0 million at the end of last
year's second quarter.
Inventories
At the end of the second quarter,
inventories totaled $338.8 million
compared to $202.1 million at the end
of last year's second quarter. The $136.6
million increase over last year's second quarter primarily
reflects elevated in-transit inventories and early receipts to
mitigate supply chain disruptions. On-hand inventories, adjusted
for early fall receipts, increased 25.0% year-over-year to more
align with higher consumer demand.
Fiscal 2022 Third Quarter and Full Year
Outlook
For the fiscal 2022 third quarter, the Company
currently expects:
- Consolidated net sales of $495
million to $510 million;
- Gross margin rate as a percent of net sales of 38.9% to
39.4%;
- SG&A as a percent of net sales of 34.4% to 34.8%;
- Effective income tax rate of 25.0%; and
- Earnings per diluted share of $0.11 to $0.14.
For the fiscal 2022 full year, the Company currently
expects:
- Consolidated net sales of $2,140
million to $2,170
million;
- Gross margin rate as a percent of net sales of 38.8% to
39.1%;
- SG&A as a percent of net sales of 32.2% to 32.5%;
- Effective income tax rate of 25.0%;
- Earnings per diluted share of $0.79 to $0.87;
and
- Capital and cloud-based expenditures of approximately
$65 million to $70 million.
Conference Call Information
The Company is
hosting a live conference call on Wednesday, August 31, 2022
beginning at 8:00 a.m. ET to review
the operating results for the second quarter. The conference call
is being webcast live over the Internet, which you may
access in the Investors section of the Company's corporate
website, www.chicosfas.com. A replay of the webcast will
remain available online for one year
at http://chicosfas.com/investors/events-and-presentations.
The phone number for the call is
1-877-883-0383. International callers should use
1-412-902-6506. The Elite Entry number, 0443821, is required to
join the conference call. Interested participants should call 10-15
minutes prior to the 8:00 a.m. start
to be placed in queue.
ABOUT CHICO'S FAS, INC.
Chico's FAS is a Florida-based
fashion company founded in 1983 on Sanibel Island, Fla. The Company
reinvented the fashion retail experience by creating fashion
communities anchored by service, which put the customer at the
center of everything we do. As one of the leading fashion retailers
in North America, Chico's FAS is a
company of three unique brands - Chico's, White House Black Market
and Soma - each thriving in their own white space, founded by
women, led by women, providing solutions that millions of women say
give them confidence and joy.
Our Company has a passion for fashion, and each day, we provide
clothing, shoes and accessories, intimate apparel and expert
styling in our brick-and-mortar boutiques, digital online boutiques
and through StyleConnect®, the Company's customized,
branded, digital styling tool that enables customers to
conveniently shop wherever, whenever and however they prefer.
As of July 30, 2022, the Company operated 1,258 stores in
the U.S. and sold merchandise through 58 international franchise
locations in Mexico and 2 domestic
franchise airport locations. The Company's merchandise is also
available at www.chicos.com, www.chicosofftherack.com, www.whbm.com
and www.soma.com.
To learn more about Chico's FAS, please visit 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 statements concerning our current
expectations, assumptions, plans, estimates, judgments and
projections about our business and our industry and other
statements that are not historical facts. These statements,
including without limitation the quote from Ms. Langenstein and the
sections captioned "Business Highlights" and "Fiscal 2022 Third
Quarter and Full Year Outlook," are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. In most cases, words or phrases such as "aim,"
"anticipates," "believes," "could," "estimates," "expects,"
"intends," "target," "may," "will," "plans," "path," "outlook,"
"project," "should," "strategy," "potential," "confident" and
similar expressions identify forward-looking statements. These
forward-looking statements are based largely on information
currently available to our management and are subject to various
risks and uncertainties that could cause actual results to differ
materially from historical results or those expressed or implied by
such forward-looking statements. Although we believe our
expectations are based on reasonable estimates and assumptions,
they are not guarantees of performance. There is no assurance that
our expectations will 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 actual results to differ include, but are not
limited to, those described in Item 1A, "Risk Factors" in our most
recent Annual Report on Form 10-K and, from time to time, in Item
1A, "Risk Factors" of our Quarterly Reports on Form 10-Q and the
following:
The effects of the pandemic, including uncertainties about its
depth and duration, new variants of COVID-19 that have emerged, the
speed, efficacy and availability of vaccines and treatments, its
impact on general economic conditions, human capital management,
consumer behavior and discretionary spending, the effectiveness of
any actions taken in response to the pandemic, and the impact of
the pandemic on our manufacturing operations, shipping costs and
timelines and the global supply chain; the ability of our
suppliers, logistics providers, vendors and landlords, to meet
their obligations to us in light of financial stress, labor
shortages, liquidity challenges, bankruptcy filings by other
industry participants, and supply chain and other disruptions;
increases in unemployment rates and labor shortages; our ability to
sufficiently staff our retail stores; changes in general economic
conditions, including but not limited to, consumer confidence and
consumer spending patterns; the impact of inflation on consumer
spending; market disruptions including pandemics or significant
health hazards, severe weather conditions, natural disasters,
terrorist activities, financial crises, political crises, war and
other military conflicts (such as the war in Ukraine) or other major events, or the
prospect of these events, including their impact on consumer
spending, inflation and the global supply chain; shifts in consumer
behavior, and our ability to adapt, identify and respond to new and
changing fashion trends and customer preferences, and to coordinate
product development with buying and planning; changes in the
general or specialty retail or apparel industries, including
significant decreases in market demand and the overall level of
spending for women's private branded clothing and related
accessories; our ability to secure and maintain customer acceptance
of in-store and online concepts and styles; increased competition
in the markets in which we operate, including our ability to remain
competitive with customer shipping terms and costs; decreases in
customer traffic at our stores; fluctuations in foreign currency
exchange rates and commodity prices; significant increases in the
costs of manufacturing, raw materials, transportation, importing,
distribution, labor and advertising; decreases in the quality of
merchandise received from suppliers and increases in delivery times
for receiving such merchandise; our ability to appropriately manage
our store fleet, including the closing of underperforming stores
and opening of new stores, and our ability to achieve the expected
results of any such store openings or store closings; our ability
to appropriately manage inventory and allocation processes and
leverage targeted promotions; our ability to maintain cost saving
discipline; our ability to operate our retail websites in a
profitable manner; our ability to successfully identify and
implement additional sales and distribution channels; our ability
to successfully execute and achieve the expected results of our
business, brand strategies, brand awareness programs, and
merchandising and marketing programs including, but not limited to,
the Company's turnaround strategy, retail fleet optimization plan,
sales initiatives, multi-channel strategies and five operating
priorities which are: 1) continuing our ongoing digital
transformation; 2) further refining product through fit, quality,
fabric and innovation in each of our brands; 3) driving increased
customer engagement through marketing; 4) maintaining our operating
and cost discipline; and 5) further enhancing the productivity of
our real estate portfolio; our ability to utilize our distribution
center and other support facilities in an efficient and effective
manner; our reliance on sourcing from foreign suppliers and
significant adverse economic, labor, political or other shifts
(including adverse changes in tariffs, taxes or other import
regulations, particularly with respect to China, or legislation prohibiting certain
imports from China); U.S. and
foreign governmental actions and policies and changes thereto; the
continuing performance, implementation and integration of our
management information systems; our ability to successfully update
our information systems; the impact of any system failure, cyber
security or other data security breaches, including any security
breaches resulting in the theft, transfer, or unauthorized
disclosure of customer, employee, or company information; our
ability to comply with applicable domestic and foreign information
security and privacy laws, regulations and technology platform
rules or other obligations related to data privacy and security;
our ability to attract, hire, train, motivate and retain qualified
employees in an inclusive environment; our ability to successfully
recruit leadership or transition members of our senior management
team; increased public focus and opinion on environmental, social
and governance ("ESG") initiatives and our ability to meet any
announced ESG goals and initiatives; future unsolicited
offers to buy the Company and actions of activist shareholders and
others and our ability to respond effectively; our ability to
secure and protect our intellectual property rights and to protect
our reputation and brand images; unanticipated obligations or
changes in estimates arising from new or existing litigation,
income taxes and other regulatory proceedings; unanticipated
adverse changes in legal, regulatory or tax laws; and our ability
to comply with the terms of our credit agreement, including the
restrictive provisions limiting our flexibility in operating our
business and obtaining additional credit on commercially reasonable
terms.
These factors should be considered in evaluating forward-looking
statements contained herein. All forward-looking statements that
are made or attributable to us are expressly qualified in their
entirety by this cautionary notice. The forward-looking statements
included herein are only made as of the date of this press release.
We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
(Financial Tables Follow)
Investor Relations Contact:
Tom Filandro
ICR, Inc.
(646) 277-1235
tom.filandro@icrinc.com
Chico's FAS, Inc. • 11215 Metro Parkway •
Fort Myers, Florida 33966 • (239)
277-6200
Chico's FAS, Inc.
and Subsidiaries
Condensed Consolidated
Statements of Income
(Unaudited)
(in thousands,
except per share amounts)
|
|
|
Thirteen Weeks
Ended
|
|
Twenty-Six Weeks
Ended
|
|
July 30,
2022
|
|
July 31,
2021
|
|
July 30,
2022
|
|
July 31,
2021
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chico's
|
$
281,777
|
|
50.4 %
|
|
$
221,389
|
|
46.9 %
|
|
$
546,243
|
|
49.7 %
|
|
$
398,410
|
|
46.3 %
|
White House Black
Market
|
158,581
|
|
28.4
|
|
122,043
|
|
25.9
|
|
327,610
|
|
29.8
|
|
226,090
|
|
26.3
|
Soma
|
118,362
|
|
21.2
|
|
128,627
|
|
27.2
|
|
225,782
|
|
20.5
|
|
235,520
|
|
27.4
|
Total Net
Sales
|
558,720
|
|
100.0
|
|
472,059
|
|
100.0
|
|
1,099,635
|
|
100.0
|
|
860,020
|
|
100.0
|
Cost of goods
sold
|
327,206
|
|
58.6
|
|
290,601
|
|
61.6
|
|
651,556
|
|
59.3
|
|
551,767
|
|
64.2
|
Gross
Margin
|
231,514
|
|
41.4
|
|
181,458
|
|
38.4
|
|
448,079
|
|
40.7
|
|
308,253
|
|
35.8
|
Selling, general and
administrative
expenses
|
173,297
|
|
31.0
|
|
145,849
|
|
30.9
|
|
344,455
|
|
31.3
|
|
280,168
|
|
32.5
|
Income from
Operations
|
58,217
|
|
10.4
|
|
35,609
|
|
7.5
|
|
103,624
|
|
9.4
|
|
28,085
|
|
3.3
|
Interest expense,
net
|
(1,056)
|
|
(0.2)
|
|
(1,722)
|
|
(0.3)
|
|
(2,031)
|
|
(0.2)
|
|
(3,427)
|
|
(0.4)
|
Income before
Income Taxes
|
57,161
|
|
10.2
|
|
33,887
|
|
7.2
|
|
101,593
|
|
9.2
|
|
24,658
|
|
2.9
|
Income tax
provision
|
15,200
|
|
2.7
|
|
7,700
|
|
1.7
|
|
24,700
|
|
2.2
|
|
7,400
|
|
0.9
|
Net
Income
|
$ 41,961
|
|
7.5 %
|
|
$ 26,187
|
|
5.5 %
|
|
$ 76,893
|
|
7.0 %
|
|
$ 17,258
|
|
2.0 %
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share - basic
|
$
0.35
|
|
|
|
$
0.22
|
|
|
|
$
0.64
|
|
|
|
$
0.15
|
|
|
Net income per common
and common
equivalent share – diluted
|
$
0.34
|
|
|
|
$
0.21
|
|
|
|
$
0.62
|
|
|
|
$
0.14
|
|
|
Weighted average common
shares
outstanding – basic
|
120,003
|
|
|
|
117,021
|
|
|
|
119,498
|
|
|
|
116,855
|
|
|
Weighted average common
and
common equivalent shares outstanding
– diluted
|
123,897
|
|
|
|
122,724
|
|
|
|
123,580
|
|
|
|
121,222
|
|
|
Chico's FAS,
Inc. and Subsidiaries
Condensed Consolidated
Balance Sheets
(Unaudited)
(in
thousands)
|
|
|
July 30,
2022
|
|
January 29,
2022
|
|
July 31,
2021
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
157,233
|
|
$
115,105
|
|
$
126,298
|
Marketable securities,
at fair value
|
15,301
|
|
—
|
|
10,891
|
Inventories
|
338,761
|
|
323,389
|
|
202,128
|
Prepaid expenses and
other current assets
|
47,553
|
|
41,871
|
|
50,428
|
Income taxes
receivable
|
12,654
|
|
13,698
|
|
41,698
|
Total Current
Assets
|
571,502
|
|
494,063
|
|
431,443
|
Property and
Equipment, net
|
181,093
|
|
195,332
|
|
208,925
|
Right of Use
Assets
|
438,959
|
|
463,077
|
|
529,945
|
Other
Assets:
|
|
|
|
|
|
Goodwill
|
16,360
|
|
16,360
|
|
16,360
|
Other intangible
assets, net
|
5,000
|
|
5,000
|
|
5,000
|
Other assets,
net
|
19,599
|
|
23,005
|
|
21,394
|
Total Other
Assets
|
40,959
|
|
44,365
|
|
42,754
|
|
$
1,232,513
|
|
$
1,196,837
|
|
$
1,213,067
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
173,891
|
|
$
180,828
|
|
$
119,387
|
Current lease
liabilities
|
165,345
|
|
172,506
|
|
163,376
|
Other current and
deferred liabilities
|
143,181
|
|
134,051
|
|
126,254
|
Total Current
Liabilities
|
482,417
|
|
487,385
|
|
409,017
|
Noncurrent
Liabilities:
|
|
|
|
|
|
Long-term
debt
|
99,000
|
|
99,000
|
|
149,000
|
Long-term lease
liabilities
|
350,797
|
|
381,081
|
|
454,164
|
Other noncurrent and
deferred liabilities
|
2,422
|
|
7,867
|
|
13,800
|
Total Noncurrent
Liabilities
|
452,219
|
|
487,948
|
|
616,964
|
Commitments and
Contingencies
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
Preferred
stock
|
—
|
|
—
|
|
—
|
Common
stock
|
1,252
|
|
1,225
|
|
1,226
|
Additional paid-in
capital
|
508,105
|
|
508,654
|
|
503,168
|
Treasury stock, at
cost
|
(494,395)
|
|
(494,395)
|
|
(494,395)
|
Retained
earnings
|
282,910
|
|
206,020
|
|
177,077
|
Accumulated other
comprehensive gain
|
5
|
|
—
|
|
10
|
Total Shareholders'
Equity
|
297,877
|
|
221,504
|
|
187,086
|
|
$
1,232,513
|
|
$
1,196,837
|
|
$
1,213,067
|
Chico's FAS, Inc.
and Subsidiaries
Condensed Consolidated
Cash Flow Statements
(Unaudited)
(in
thousands)
|
|
|
Twenty-Six Weeks
Ended
|
|
July 30,
2022
|
|
July 31,
2021
|
Cash Flows from
Operating Activities:
|
|
|
|
Net income
|
$
76,893
|
|
$
17,258
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Inventory
write-offs
|
434
|
|
374
|
Depreciation and
amortization
|
22,886
|
|
27,348
|
Non-cash lease
expense
|
90,293
|
|
95,317
|
Loss on disposal and
impairment of property and equipment, net
|
2,126
|
|
1,335
|
Deferred tax
benefit
|
(432)
|
|
250
|
Share-based
compensation expense
|
7,157
|
|
5,689
|
Changes in assets and
liabilities:
|
|
|
|
Inventories
|
(15,806)
|
|
1,481
|
Prepaid expenses and
other assets
|
(1,136)
|
|
(8,165)
|
Income tax
receivable
|
1,044
|
|
16,442
|
Accounts
payable
|
(6,635)
|
|
2,991
|
Accrued and other
liabilities
|
2,683
|
|
6,259
|
Lease
liability
|
(103,508)
|
|
(132,549)
|
Net cash provided by
operating activities
|
75,999
|
|
34,030
|
Cash Flows from
Investing Activities:
|
|
|
|
Purchases of
marketable securities
|
(16,324)
|
|
(219)
|
Proceeds from sale of
marketable securities
|
1,029
|
|
7,826
|
Purchases of property
and equipment
|
(10,191)
|
|
(5,150)
|
Net cash (used in)
provided by investing activities
|
(25,486)
|
|
2,457
|
Cash Flows from
Financing Activities:
|
|
|
|
Payments of debt
issuance costs
|
(706)
|
|
—
|
Proceeds from issuance
of common stock
|
156
|
|
—
|
Payments of tax
withholdings related to share-based awards
|
(7,835)
|
|
(980)
|
Net cash used in
financing activities
|
(8,385)
|
|
(980)
|
Net increase in cash
and cash equivalents
|
42,128
|
|
35,507
|
Cash and Cash
Equivalents, Beginning of period
|
115,105
|
|
90,791
|
Cash and Cash
Equivalents, End of period
|
$
157,233
|
|
$
126,298
|
Supplemental Detail on Net Income Per Common 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 income per common share pursuant to the "two-class"
method. For the Company, participating securities are comprised
entirely of unvested restricted stock awards granted prior to
fiscal 2020.
Net income per share is determined using the two-class method
when it is more dilutive than the treasury stock method. Basic net
income per share is computed by dividing net income available to
common shareholders by the weighted-average number of common shares
outstanding during the period, including participating securities.
Diluted net income per share reflects the dilutive effect of
potential common shares from non-participating securities such as
restricted stock awards granted after fiscal 2019, stock options,
PSUs and restricted stock units. For the thirteen and twenty-six
weeks ended July 30, 2022 and July 31, 2021, potential
common shares were excluded from the computation of diluted income
per common share to the extent they were antidilutive.
The following unaudited table sets forth the computation of net
income per basic and diluted common share shown on the face of the
accompanying condensed consolidated statements of income (in
thousands, except per share amounts):
|
|
Thirteen Weeks
Ended
|
|
Twenty-Six Weeks
Ended
|
|
|
July 30,
2022
|
|
July 31,
2021
|
|
July 30,
2022
|
|
July 31,
2021
|
Numerator
|
|
|
|
|
|
|
|
|
Net income
|
|
$
41,961
|
|
$
26,187
|
|
$
76,893
|
|
$
17,258
|
Net income allocated
to participating securities
|
|
(166)
|
|
(235)
|
|
(348)
|
|
(171)
|
Net income available
to common shareholders
|
|
$
41,795
|
|
$
25,952
|
|
$
76,545
|
|
$
17,087
|
|
|
|
|
|
|
|
|
|
Denominator
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
– basic
|
|
120,003
|
|
117,021
|
|
119,498
|
|
116,855
|
Dilutive effect of
non-participating securities
|
|
3,894
|
|
5,703
|
|
4,082
|
|
4,367
|
Weighted average
common and common
equivalent shares outstanding – diluted
|
|
123,897
|
|
122,724
|
|
123,580
|
|
121,222
|
|
|
|
|
|
|
|
|
|
Net income per
common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.35
|
|
$
0.22
|
|
$
0.64
|
|
$
0.15
|
Diluted
|
|
$
0.34
|
|
$
0.21
|
|
$
0.62
|
|
$
0.14
|
Chico's FAS, Inc.
and Subsidiaries
|
Store Count and Square
Footage
|
Thirteen Weeks Ended
July 30, 2022
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
April 30,
2022
|
|
New
Stores
|
|
Closures
|
|
July 30,
2022
|
|
|
Store
Count:
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
498
|
|
—
|
|
(4)
|
|
494
|
|
|
Chico's
outlets
|
122
|
|
—
|
|
—
|
|
122
|
|
|
WHBM frontline
boutiques
|
334
|
|
—
|
|
(3)
|
|
331
|
|
|
WHBM outlets
|
54
|
|
—
|
|
(1)
|
|
53
|
|
|
Soma frontline
boutiques
|
238
|
|
3
|
|
(1)
|
|
240
|
|
|
Soma outlets
|
18
|
|
—
|
|
—
|
|
18
|
|
|
Total Chico's FAS,
Inc.
|
1,264
|
|
3
|
|
(9)
|
|
1,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30,
2022
|
|
New
Stores
|
|
Closures
|
|
Other Changes in
SSF
|
|
July 30,
2022
|
Net Selling Square
Footage (SSF):
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
1,357,545
|
|
—
|
|
(11,228)
|
|
—
|
|
1,346,317
|
Chico's
outlets
|
307,393
|
|
—
|
|
—
|
|
—
|
|
307,393
|
WHBM frontline
boutiques
|
783,450
|
|
—
|
|
(6,057)
|
|
323
|
|
777,716
|
WHBM outlets
|
112,724
|
|
—
|
|
(2,330)
|
|
—
|
|
110,394
|
Soma frontline
boutiques
|
448,223
|
|
3,410
|
|
(1,039)
|
|
550
|
|
451,144
|
Soma outlets
|
34,329
|
|
—
|
|
—
|
|
—
|
|
34,329
|
Total Chico's FAS,
Inc.
|
3,043,664
|
|
3,410
|
|
(20,654)
|
|
873
|
|
3,027,293
|
|
As of July 30,
2022, the Company's franchise operations consisted of 58
international retail locations in Mexico and 2 domestic airport
locations.
|
Chico's FAS, Inc.
and Subsidiaries
|
Store Count and Square
Footage
|
Twenty-Six Weeks Ended
July 30, 2022
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
January 29,
2022
|
|
New
Stores
|
|
Closures
|
|
July 30,
2022
|
|
|
Store
count:
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
499
|
|
—
|
|
(5)
|
|
494
|
|
|
Chico's
outlets
|
122
|
|
—
|
|
—
|
|
122
|
|
|
WHBM frontline
boutiques
|
335
|
|
—
|
|
(4)
|
|
331
|
|
|
WHBM outlets
|
54
|
|
—
|
|
(1)
|
|
53
|
|
|
Soma frontline
boutiques
|
238
|
|
3
|
|
(1)
|
|
240
|
|
|
Soma outlets
|
18
|
|
—
|
|
—
|
|
18
|
|
|
Total Chico's FAS,
Inc.
|
1,266
|
|
3
|
|
(11)
|
|
1,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 29,
2022
|
|
New
Stores
|
|
Closures
|
|
Other Changes in
SSF
|
|
July 30,
2022
|
Net Selling Square
Footage (SSF):
|
|
|
|
|
|
|
|
|
|
Chico's frontline
boutiques
|
1,362,276
|
|
—
|
|
(14,580)
|
|
(1,379)
|
|
1,346,317
|
Chico's
outlets
|
307,393
|
|
—
|
|
—
|
|
—
|
|
307,393
|
WHBM frontline
boutiques
|
785,722
|
|
—
|
|
(8,329)
|
|
323
|
|
777,716
|
WHBM outlets
|
112,724
|
|
—
|
|
(2,330)
|
|
—
|
|
110,394
|
Soma frontline
boutiques
|
448,773
|
|
3,410
|
|
(1,039)
|
|
—
|
|
451,144
|
Soma outlets
|
34,329
|
|
—
|
|
—
|
|
—
|
|
34,329
|
Total Chico's FAS,
Inc.
|
3,051,217
|
|
3,410
|
|
(26,278)
|
|
(1,056)
|
|
3,027,293
|
|
As of July 30,
2022, the Company's franchise operations consisted of 58
international retail locations in Mexico and 2 domestic airport
locations.
|
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SOURCE Chico's FAS, Inc.