CHICO'S FAS, INC. FORT MYERS, Fla., Nov. 22, 2016 /PRNewswire/ --
Cost Reduction and Operating Efficiency Initiatives Drive Significant Earnings Growth
-- GAAP earnings per share up $0.27 to $0.18 compared to last year
-- Non-GAAP earnings per share up $0.07, or 54%, to $0.20 compared to last
year
-- Company on track to deliver double digit operating margin
Chico's FAS, Inc. (NYSE: CHS) today announced its financial results for the fiscal 2016 third quarter and thirty-nine weeks ended October 29, 2016.
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For the thirteen weeks ended October 29, 2016 ("the third quarter"), the Company reported net income of $23.6 million, or $0.18 per diluted share, compared to a net loss of $11.6 million, or $0.09 per diluted share, for the thirteen weeks ended October 31, 2015. The Company reported third quarter 2016 adjusted net income of $26.4 million, or $0.20 adjusted earnings per diluted share, compared to adjusted net income of $17.7 million, or $0.13 adjusted earnings per diluted share, in last year's third quarter. The adjusted results exclude EPS net charges of $0.02 in 2016 and $0.22 in 2015 related to restructuring and strategic charges and Boston Proper, as presented in the accompanying GAAP to non-GAAP reconciliation.
For the thirty-nine weeks ended October 29, 2016, the Company reported net income of $77.7 million, or $0.58 per diluted share, compared to net income of $23.0 million, or $0.16 per diluted share, for the thirty-nine weeks ended October 31, 2015. The Company reported adjusted net income of $93.2 million, or $0.70 adjusted earnings per diluted share, compared to adjusted net income of $99.7 million, or $0.70 adjusted earnings per diluted share, in 2015. The adjusted results exclude EPS net charges of $0.12 in 2016 and $0.54 in 2015 related to restructuring and strategic charges and Boston Proper, as presented in the accompanying GAAP to non-GAAP reconciliation.
Shelley Broader, CEO and President, said, "Our third quarter earnings exceeded expectations. As a result of our efforts to transform Chico's FAS for the future, we were able to achieve significant earnings growth and are demonstrating considerable progress toward our goal of double digit operating margin. We are fully engaged in the implementation of our cost reduction and operating efficiency initiatives, and our continued progress reinforces our confidence in the company's strategic plan. The improvements across the organization, additional recent hires, customers' positive response to new merchandising initiatives, and other brand specific actions underway are re-energizing the company and fortifying our foundation for revenue and earnings growth and sustainable value creation."
Net Sales
For the third quarter, net sales were $596.9 million compared to $645.4 million in last year's third quarter. This decrease of 7.5% included $18.7 million related to Boston Proper. When excluding Boston Proper from fiscal 2015, net sales decreased 4.8%, primarily reflecting a decline in comparable sales of 4.9%, comprised of reduced transaction count and lower average dollar sale. Third quarter average unit retail increased with a decline in promotional activity.
Comparable Sales
Thirteen Weeks Ended Thirty-Nine Weeks Ended
--------------------
October 29, 2016 October 31, 2015 October 29, 2016 October 31, 2015
---------------- ---------------- ---------------- ----------------
Chico's (5.6)% (4.7)% (5.4)% (2.1)%
White House Black Market (5.5)% (2.0)% (3.5)% (0.8)%
0.6%
Soma 0.4% (0.9)% 3.6%
Total Company (4.9)% (3.3)% (4.0)% (1.0)%
Gross Margin
For the third quarter, gross margin was $230.3 million, or 38.6%, compared to $249.2 million, or 38.6%, in last year's third quarter. When excluding Boston Proper from fiscal 2015, gross margin decreased 40 basis points in fiscal 2016 compared to gross margin of $244.2 million, or 39.0% last year. This 40 basis point decrease from the 2015 adjusted gross margin rate primarily reflects an improvement in merchandise margin, which was more than offset by deleverage of occupancy costs and incentive compensation.
Selling, General and Administrative Expenses
For the third quarter, selling, general and administrative expenses ("SG&A") were $188.4 million, or 31.6%, compared to $226.3 million, or 35.1% last year. When excluding Boston Proper from fiscal 2015, SG&A decreased $27.3 million, or 280 basis points, compared to $215.6 million, or 34.4% last year. This $27.3 million decrease is primarily due to a reduction in unproductive marketing spend and savings in store labor, partially offset by an increase in incentive compensation.
Restructuring and Strategic Charges
For the third quarter, the Company recorded pre-tax restructuring and strategic charges of $10.8 million, primarily consisting of outside services related to cost reduction and operating efficiency initiatives (the "Initiatives"). On an after-tax basis, the impact of these charges was $6.8 million, or $0.05 per diluted share.
Income Tax Expense
For the third quarter, the effective tax rate of 22.9% reflected an additional tax benefit on the disposition of Boston Proper's stock and the recognition of additional income tax credits. Excluding the additional tax benefit, the effective tax rate for the third quarter of 2016 would have been 36.2% compared to 37.0% in the same period last year.
Inventories
At the end of the third quarter of 2016, inventories totaled $261.3 million compared to $269.0 million last year. When excluding Boston Proper store inventories from fiscal 2015, inventories decreased $6.0 million, or 2.2%, in the third quarter of fiscal 2016 compared to $267.3 million last year, primarily reflecting improved inventory management.
Share Repurchase Program
During the third quarter of fiscal 2016, the Company repurchased 1.7 million shares for $20.0 million, at an average of $12.13 per share, under its $300.0 million share repurchase program announced in November 2015, with $183.7 million remaining under the program.
Changes in Presentation
Commencing in fiscal 2016, store occupancy expenses and shipping expenses, historically presented in SG&A, are being presented in Cost of Goods Sold. The Company believes that these costs represent direct costs associated with the sale of its merchandise, and these changes better align the Company with its peers and better reflect how the business operates. Additionally, shipping revenue, historically presented in SG&A, is being presented in Net Sales. These adjustments were made retrospectively and all periods presented conform with this presentation.
Fiscal 2016 Fourth Quarter Outlook
The fiscal 2016 fourth quarter outlook excludes Boston Proper for comparability purposes. The Company is anticipating a low single digit comparable sales decline in the fourth quarter compared to last year. We expect improvement in merchandise margin to be more than offset by occupancy deleverage, resulting in a reduction in gross margin rate. We continue to make progress on our Initiatives and expect a decrease in SG&A as a percent of sales; however, the reduction in marketing spend will be at a lower level than recognized in the third quarter. Fourth quarter total inventory is planned to be lower than last year.
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, complementary accessories, and other non-clothing items.
As of October 29, 2016, the Company operated 1,510 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.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Some statements herein may be "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, including but without limitation, statements regarding our plans, objectives, and the future success of our store concepts, the implementation and success of our previously announced restructuring program and organizational redesign, and the implementation and success of our strategies to increase the our brands' sales volume and profitability through four previously announced focus areas. These statements may address items such as expectations for future sales, gross margin, SG&A (particularly estimated expected savings), operating margin, inventory levels, comparable store sales and cash needs, as well as, planned store openings, closings and expansions. These statements relate to expectations concerning matters that are not historical fact and may include the words or phrases such as "expects," "believes," "anticipates," "plans," "estimates," "approximately," "our planning assumptions," "future outlook," and similar expressions. Except for historical information, matters discussed in such oral and written 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, general economic and business conditions, conditions in the specialty retail or apparel industries, the availability of quality store sites, the ability to successfully execute our business strategies, the ability to achieve the results of our restructuring program, the ability to achieve the results of our four focus areas, particularly the results expected from our current strategic projects related to those focus areas, the integration of our new management team, 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 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, 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. All written or oral 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.
(Financial Tables Follow)
Executive Contact:
Jennifer Powers
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)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 29, 2016 October 31, 2015 October 29, 2016 October 31, 2015
Amount % of Amount % of Amount % of Amount % of
Sales Sales Sales Sales
-----
Net sales:
Chico's $312,203 52.3 $333,421 51.7 $995,067 53.0 $1,058,697 52.2
White House Black Market 210,389 35.2 220,965 34.2 633,420 33.8 659,682 32.5
Soma 74,320 12.5 72,349 11.2 247,134 13.2 240,347 11.8
Boston Proper - 0.0 18,698 2.9 - 0.0 70,299 3.5
--- --- ------ --- --- --- ------ ---
Total net sales 596,912 100.0 645,433 100.0 1,875,621 100.0 2,029,025 100.0
Cost of goods sold 366,618 61.4 396,270 61.4 1,142,182 60.9 1,219,543 60.1
------- ---- ------- ---- --------- ---- --------- ----
Gross margin 230,294 38.6 249,163 38.6 733,439 39.1 809,482 39.9
Selling, general and administrative
expenses 188,350 31.6 226,256 35.1 583,117 31.1 661,491 32.6
Goodwill and intangible impairment charges - 0.0 45,514 7.1 - 0.0 112,455 5.6
Restructuring and strategic charges 10,820 1.8 3,137 0.4 31,027 1.6 34,178 1.6
------ --- ----- --- ------ --- ------ ---
Income (loss) from operations 31,124 5.2 (25,744) (4.0) 119,295 6.4 1,358 0.1
Interest expense, net (526) (0.1) (466) (0.1) (1,474) (0.1) (1,421) (0.1)
---- ---- ---- ---- ------ ---- ------ ----
Income (loss) before income taxes 30,598 5.1 (26,210) (4.1) 117,821 6.3 (63) 0.0
Income tax provision (benefit) 7,000 1.1 (14,600) (2.3) 40,100 2.2 (23,100) (1.1)
----- --- ------- ---- ------ --- ------- ----
Net income (loss) $23,598 4.0 $(11,610) (1.8) $77,721 4.1 $23,037 1.1
======= === ======== ==== ======= === ======= ===
Per share data:
Net income (loss) per common share-basic $0.18 $(0.09) $0.59 $0.16
===== ====== ===== =====
Net income (loss) per common and common
equivalent share-diluted $0.18 $(0.09) $0.58 $0.16
===== ====== ===== =====
Weighted average common shares
outstanding-basic 128,753 136,172 129,830 139,386
======= ======= ======= =======
Weighted average common and common
equivalent shares outstanding-diluted 128,996 136,172 129,999 139,724
======= ======= ======= =======
Dividends declared per share $ - $ - $0.2400 $0.2325
=== === === === ======= =======
Chico's FAS, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
October 29, 2016 January 30, 2016 October 31, 2015
---------------- ---------------- ----------------
ASSETS
Current Assets:
Cash and cash equivalents $80,331 $89,951 $91,256
Marketable securities, at fair value 50,411 50,194 47,316
Inventories 261,341 233,834 268,968
Prepaid expenses and other current assets 46,635 45,660 55,149
Income taxes receivable 3,402 29,157 16,225
Assets held for sale 18,520 16,525 41,802
------ ------ ------
Total Current Assets 460,640 465,321 520,716
Property and Equipment, net 495,587 550,953 556,172
Other Assets:
Goodwill 96,774 96,774 96,774
Other intangible assets, net 38,930 38,930 38,930
Other assets, net 18,382 14,074 40,622
------ ------ ------
Total Other Assets 154,086 149,778 176,326
------- ------- -------
$1,110,313 $1,166,052 $1,253,214
========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $125,532 $129,343 $147,526
Current debt 10,000 10,000 10,000
Other current and deferred liabilities 148,706 158,788 140,557
Liabilities held for sale - - 8,478
--- --- -----
Total Current Liabilities 284,238 298,131 306,561
Noncurrent Liabilities:
Long-term debt 74,768 82,219 84,702
Deferred liabilities 122,848 130,743 135,390
Deferred taxes 9,320 15,171 20,385
----- ------ ------
Total Noncurrent Liabilities 206,936 228,133 240,477
Commitments and Contingencies
Stockholders' Equity:
Preferred stock - - -
Common stock 1,301 1,355 1,394
Additional paid-in capital 445,787 435,881 429,746
Treasury stock, at cost (366,081) (289,813) (249,854)
Retained earnings 538,134 492,325 524,244
Accumulated other comprehensive (loss) income (2) 40 646
--- --- ---
Total Stockholders' Equity 619,139 639,788 706,176
------- ------- -------
$1,110,313 $1,166,052 $1,253,214
========== ========== ==========
Chico's FAS, Inc. and Subsidiaries
Condensed Consolidated Cash Flow Statements
(Unaudited)
(in thousands)
Thirty-Nine Weeks Ended
October 29, 2016 October 31, 2015
---------------- ----------------
Cash Flows From Operating Activities:
Net income $77,721 $23,037
Adjustments to reconcile net income to net cash provided by
operating activities:
Goodwill and intangible impairment charges,
pre-tax - 112,455
Depreciation and amortization 82,585 90,266
Loss on disposal and impairment of property
and equipment 6,434 22,609
Deferred tax benefit (8,098) (52,623)
Stock-based compensation expense 15,483 20,712
Excess tax benefit from stock-based
compensation (322) (2,992)
Deferred rent and lease credits (14,264) (15,018)
Changes in assets and liabilities:
Inventories (27,506) (44,811)
Prepaid expenses and accounts receivable (6,237) (12,024)
Income tax receivable 25,755 (15,629)
Accounts payable (3,789) 7,377
Accrued and other liabilities (3,391) (3,300)
------ ------
Net cash provided by operating activities 144,371 130,059
------- -------
Cash Flows From Investing Activities:
Purchases of marketable securities (43,266) (43,479)
Proceeds from sale of marketable securities 43,058 122,712
Purchases of property and equipment, net (35,663) (66,595)
------- -------
Net cash (used in) provided by investing
activities (35,871) 12,638
------- ------
Cash Flows From Financing Activities:
Proceeds from borrowings - 124,000
Payments on borrowings (7,500) (29,000)
Proceeds from issuance of common stock 2,363 10,614
Excess tax benefit from stock-based
compensation 322 2,992
Dividends paid (31,936) (32,933)
Repurchase of common stock (81,324) (260,555)
------- --------
Net cash used in financing activities (118,075) (184,882)
-------- --------
Effects of exchange rate changes on cash and
cash equivalents (45) 90
--- ---
Net decrease in cash and cash equivalents (9,620) (42,095)
Cash and Cash Equivalents, Beginning of period 89,951 133,351
------ -------
Cash and Cash Equivalents, End of period $80,331 $91,256
======= =======
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 when 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 thirty-nine weeks ended October 29, 2016 and October 31, 2015, 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 operations (in thousands, except per share amounts):
Thirteen Weeks Ended Thirty-Nine Weeks Ended
--------------------
October 29, 2016 October 31, 2015 October 29, 2016 October 31, 2015
---------------- ---------------- ---------------- ----------------
Numerator
Net income (loss) $23,598 $(11,610) $77,721 $23,037
Net income and dividends declared allocated to participating securities (502) - (1,677) (492)
---- --- ------ ----
Net income (loss) available to common shareholders $23,096 $(11,610) $76,044 $22,545
======= ======== ======= =======
Denominator
Weighted average common shares outstanding - basic 128,753 136,172 129,830 139,386
Dilutive effect of non-participating securities 243 - 169 338
--- --- --- ---
Weighted average common and common equivalent shares outstanding - diluted 128,996 136,172 129,999 139,724
======= ======= ======= =======
Net income (loss) per common share(1)
Basic $0.18 $(0.09) $0.59 $0.16
===== ====== ===== =====
Diluted $0.18 $(0.09) $0.58 $0.16
===== ====== ===== =====
((1) )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 generally accepted accounting principles ("GAAP") diluted EPS may not equal the sum of the quarters.
SEC Regulation G - The Company reports its consolidated financial results in accordance with GAAP. However, to supplement these consolidated financial results, management believes that certain non-GAAP results, which exclude charges and results related to non-continuing Boston Proper operations as well as certain strategic 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 and earnings per diluted share on a GAAP basis to net income and earnings per diluted share on a non-GAAP adjusted 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)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 29, 2016 October 31, 2015 October 29, 2016 October 31, 2015
---------------- ---------------- ---------------- ----------------
Net income (loss): (1)
---------------------
GAAP basis $23,598 $(11,610) $77,721 $23,037
Goodwill and other intangible impairment charges - 23,859 - 70,985
Restructuring and strategic charges 6,806 1,948 19,422 21,225
Boston Proper operating loss - 3,502 - 8,239
Tax benefit related to the disposition of Boston Proper (3,979) - (3,979) (23,779)
------ --- ------ -------
Non-GAAP adjusted basis $26,425 $17,699 $93,164 $99,707
======= ======= ======= =======
Net income (loss) per diluted share: (1) (2)
-------------------------------------------
GAAP basis $0.18 $(0.09) $0.58 $0.16
Goodwill and other intangible impairment charges 0.00 0.18 0.00 0.50
Restructuring and strategic charges 0.05 0.01 0.15 0.15
Boston Proper operating loss 0.00 0.03 0.00 0.06
Tax benefit related to the disposition of Boston Proper (0.03) 0.00 (0.03) (0.17)
Non-GAAP adjusted basis $0.20 $0.13 $0.70 $0.70
===== ===== ===== =====
((1)) All adjustments to net income (loss) are presented net of tax.
((2)) 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 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 GAAP. However, to supplement these consolidated financial results, management believes that certain non-GAAP results, which exclude results from non-continuing Boston Proper operations, may provide a more meaningful measure on which to compare the Company's results of operations between periods.
The tables below present a reconciliation of selected consolidated financial data on a GAAP basis to selected consolidated financial data on a non-GAAP adjusted basis, reflecting certain adjustments as identified in the footnotes to the table and excluding Boston Proper:
Chico's FAS, Inc. and Subsidiaries
Fiscal 2015 Reconciliation of Reported to Adjusted Selected Non-GAAP Consolidated Financial Data
(Unaudited)
(in thousands)
As Reported
Thirteen Weeks Ended Thirty-Nine Weeks Ended
-------------------- -----------------------
October 31, 2015 October 31, 2015
Amount % of Sales Amount % of Sales
------ ---------- ------ ----------
Net Sales $641,219 100.0 $2,014,909 100.0
Cost of goods sold 290,737 45.3 902,689 44.8
------- ---- ------- ----
Gross margin 350,482 54.7 1,112,220 55.2
Selling, general and administrative expenses 327,575 51.1 964,229 47.9
Subtotal 22,907 3.6 147,991 7.3
------ --- ------- ---
Boston Proper
Thirteen Weeks Ended Thirty-Nine Weeks Ended
-------------------- -----------------------
October 31, 2015 October 31, 2015
Amount % of Sales Amount % of Sales
------ ---------- ------ ----------
Net Sales $17,312 100.0 $65,301 100.0
Cost of goods sold 11,486 66.3 38,073 58.3
------ ---- ------ ----
Gross margin 5,826 33.7 27,228 41.7
Selling, general and administrative expenses 11,466 66.2 40,495 62.0
Subtotal (5,640) (32.5) (13,267) (20.3)
------ ----- ------- -----
Adjustments, excluding Boston Proper
Thirteen Weeks Ended Thirty-Nine Weeks Ended
-------------------- -----------------------
October 31, 2015 October 31, 2015
Amount % of Sales Amount % of Sales
------ ---------- ------ ----------
Net Sales(1) $2,828 0.4 $9,118 0.5
Store occupancy expense(2) 95,583 14.8 284,141 14.1
Shipping expense(3) 7,710 1.2 23,504 1.2
----- --- ------ ---
Cost of goods sold 103,293 16.0 307,645 15.3
Gross margin (100,465) (15.6) (298,527) (14.8)
-------- ----- -------- -----
Selling, general and administrative expenses (100,465) (15.6) (298,527) (14.8)
Subtotal - - - -
--- --- --- ---
As Adjusted, Non-GAAP
Thirteen Weeks Ended Thirty-Nine Weeks Ended
-------------------- -----------------------
October 31, 2015 October 31, 2015
Amount % of Sales Amount % of Sales
------ ---------- ------ ----------
Net Sales $626,735 100.0 $1,958,726 100.0
Cost of goods sold 382,544 61.0 1,172,261 59.8
------- ---- --------- ----
Gross margin 244,191 39.0 786,465 40.2
Selling, general and administrative expenses 215,644 34.4 625,207 31.9
Subtotal 28,547 4.6 161,258 8.3
------ --- ------- ---
((1) )Adjustments to net sales represent the correction of an immaterial error in the classification of shipping revenue, which was previously classified within SG&A.
((2)) Adjustments to store occupancy expense represent the reclassification of store occupancy expenses, which were previously classified within SG&A.
((3) )Adjustments to shipping expense represent a change in accounting policy to present shipping expenses within cost of goods sold, which were previously reported within SG&A.
Chico's FAS, Inc. and Subsidiaries
Store Count and Square Footage
Thirteen Weeks Ended October 29, 2016
(Unaudited)
July 30, New Stores Closures October 29,
2016 2016
---- ----
Store count:
Chico's frontline boutiques 599 1 (6) 594
Chico's outlets 117 - - 117
Chico's Canada 4 - - 4
WHBM frontline boutiques 427 - (2) 425
WHBM outlets 71 - - 71
WHBM Canada 6 - - 6
Soma frontline boutiques 274 - - 274
Soma outlets 19 - - 19
Total Chico's FAS, Inc. 1,517 1 (8) 1,510
===== === === =====
July 30, New Stores Closures Other October 29,
2016 changes in 2016
SSF
---
Net selling square footage (SSF):
Chico's frontline boutiques 1,638,071 2,444 (16,562) 279 1,624,232
Chico's outlets 293,646 - - - 293,646
Chico's Canada 9,695 - - - 9,695
WHBM frontline boutiques 993,320 - (3,247) 196 990,269
WHBM outlets 148,457 - - - 148,457
WHBM Canada 14,891 - - - 14,891
Soma frontline boutiques 517,994 - - - 517,994
Soma outlets 35,637 - - - 35,637
Total Chico's FAS, Inc. 3,651,711 2,444 (19,809) 475 3,634,821
========= ===== ======= === =========
As of October 29, 2016 the Company also sold merchandise through 88 international franchise locations, comprised of 7 Chico's stand-alone boutiques, 50 Chico's shop-in-shops, and 31 Soma shop-in-shops.
Chico's FAS, Inc. and Subsidiaries
Store Count and Square Footage
Thirty-Nine Weeks Ended October 29, 2016
(Unaudited)
January 30, New Stores Closures October 29,
2016 2016
---- ----
Store count:
Chico's frontline boutiques 604 3 (13) 594
Chico's outlets 117 - - 117
Chico's Canada 4 - - 4
WHBM frontline boutiques 429 3 (7) 425
WHBM outlets 71 - - 71
WHBM Canada 6 - - 6
Soma frontline boutiques 269 6 (1) 274
Soma outlets 18 1 - 19
Total Chico's FAS, Inc. 1,518 13 (21) 1,510
===== === === =====
January 30, New Stores Closures Other October 29,
2016 changes in 2016
SSF
---
Net selling square footage (SSF):
Chico's frontline boutiques 1,652,991 7,556 (35,960) (355) 1,624,232
Chico's outlets 293,646 - - - 293,646
Chico's Canada 9,695 - - - 9,695
WHBM frontline boutiques 991,164 6,921 (13,547) 5,731 990,269
WHBM outlets 148,457 - - - 148,457
WHBM Canada 14,891 - - - 14,891
Soma frontline boutiques 507,805 11,008 (1,562) 743 517,994
Soma outlets 33,792 1,845 - - 35,637
Total Chico's FAS, Inc. 3,652,441 27,330 (51,069) 6,119 3,634,821
========= ====== ======= ===== =========
As of October 29, 2016 the Company also sold merchandise through 88 international franchise locations, comprised of 7 Chico's stand-alone boutiques, 50 Chico's shop-in-shops, and 31 Soma shop-in-shops.
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SOURCE Chico's FAS, Inc.
