FORT MYERS, Fla., May 27, 2015 /PRNewswire/ -- Chico's FAS, Inc. (NYSE: CHS) today announced its financial results for the fiscal 2015 first quarter.

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For the thirteen weeks ended May 2, 2015 ("the first quarter"), the Company reported adjusted net income of $41.8 million compared to net income of $39.9 million for the thirteen weeks ended May 3, 2014, and first quarter 2015 adjusted earnings per diluted share of $0.28 compared to earnings per diluted share of $0.26 in last year's first quarter. The first quarter adjusted results exclude EPS charges of $0.06 in 2015 related to restructuring and strategic charges (the "Charges"), as presented in the accompanying GAAP to Non-GAAP Reconciliation. Including the impact of the Charges, the Company reported first quarter 2015 net income of $32.5 million, or $0.22 per diluted share.

Net Sales

For the first quarter, net sales were $693.3 million, an increase of 1.7% compared to $681.6 million in last year's first quarter, primarily reflecting 56 net new stores for a square footage increase of 3.3%, partially offset by a 0.1% decrease in comparable sales. The 0.1% decrease in comparable sales for the first quarter was following a 2.6% decrease in last year's first quarter, and reflected approximately flat average dollar sale and transaction count.

Comparable Sales



                                Thirteen Weeks Ended
                                --------------------

                               May 2, 2015           May 3, 2014
                               -----------           -----------

    Chico's                         (2.3)%                       (0.9)%

    White House | Black Market        1.7%                       (8.6)%

    Soma                              6.5%                         9.3%

    Total Company                   (0.1)%                       (2.6)%
                                     =====                         =====

Gross Margin

For the first quarter, gross margin was $395.8 million compared to $382.9 million in last year's first quarter. Gross margin was 57.1% of net sales, a 90 basis point increase from last year's first quarter, primarily reflecting a decrease in promotional activity in response to improved inventory management, partially offset by the impact of product delayed by port issues in 2015 and the return to accrued incentive compensation at a target level.

Selling, General and Administrative Expenses

For the first quarter, selling, general and administrative expenses ("SG&A") were $328.2 million compared to $319.0 million in last year's first quarter. SG&A was 47.4% of net sales, a 60 basis point increase from last year's first quarter, primarily reflecting sales deleverage of occupancy expenses and the return to accrued incentive compensation at a target level, partially offset by benefits from cost reduction efforts announced last quarter.

Restructuring and Strategic Charges

For the first quarter, the Company recorded pre-tax restructuring and strategic charges of $14.9 million primarily related to employee-related costs and property and equipment impairment charges. On an after-tax basis, the first quarter restructuring and strategic charges impact was $9.3 million, or $0.06 per diluted share.

Inventories

At the end of the first quarter of 2015, total inventories per selling square foot decreased 2.8%, primarily reflecting improved inventory management and lower average unit cost compared to the first quarter last year. Total inventories increased by less than one percent compared to the first quarter of last year.

Credit Facility

At the end of the first quarter of 2015, the Company had $124 million in borrowings outstanding under its revolving credit facility dated July 27, 2011 ("Existing Credit Facility"), which was used to fund a portion of the accelerated stock repurchase agreements ("ASR Agreements") entered into in the first quarter. On May 4, 2015, the Company executed a new $200 million credit agreement, with a term of five years, of which $124 million was drawn at closing and used to repay all borrowings outstanding under its Existing Credit Facility.

Accelerated Stock Repurchase Agreements

In March 2015, the Company entered into ASR Agreements with a group of banks to purchase $250 million in outstanding shares of the Company's common stock. The repurchase was funded through a combination of available cash on hand and $124 million in borrowings under our Existing Credit Facility. The Company received an initial delivery of approximately 10.7 million common shares, which represents approximately 75% of the shares expected to be repurchased based on the share price on the date of the agreement. The specific final number of shares to be repurchased will be based on the volume-weighted average share price of the Company's common stock during the calculation period of the ASR Agreements, which are scheduled to expire no later than October 2015.

ABOUT CHICO'S FAS, INC.

The Company, through its brands - Chico's, White House | Black Market, Soma, 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 May 2, 2015, the Company operated 1,552 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:
Jennifer Powers Adkins
Vice President - Investor Relations
Chico's FAS, Inc.
(239) 346-4199



                                                                    Chico's FAS, Inc. and Subsidiaries

                                                               Condensed Consolidated Statements of Income

                                                                               (Unaudited)

                                                                 (in thousands, except per share amounts)


                                                                                    Thirteen Weeks Ended
                                                                                --------------------

                                                                 May 2, 2015                                 May 3, 2014
                                                                 -----------                                 -----------

                                                         Amount                    % of                 Amount                    % of
                                                                                Sales                                          Sales
                                                                                                                                 -----

    Net sales:

    Chico's                                                          $368,492                              53.2%                                  $372,288          54.6%

    White House | Black Market                            224,520                                32.4%                            217,173                    31.9%

    Soma                                                   76,546                                11.0%                             67,833                    10.0%

    Boston Proper                                          23,781                                 3.4%                             24,311                     3.5%
                                                           ------                                  ---                              ------                      ---

    Total net sales                                       693,339                               100.0%                            681,605                   100.0%

    Cost of goods sold                                    297,569                                42.9%                            298,714                    43.8%
                                                          -------                                 ----                             -------                     ----

    Gross margin                                          395,770                                57.1%                            382,891                    56.2%

    Selling, general and administrative expenses          328,217                                47.4%                            319,049                    46.8%

    Restructuring and strategic charges                    14,875                                 2.1%                                  -                    0.0%

    Income from operations                                 52,678                                 7.6%                             63,842                     9.4%

    Interest (expense) income, net                          (453)                              (0.1)%                                 40                     0.0%
                                                             ----                                -----                                 ---                      ---

    Income before income taxes                             52,225                                 7.5%                             63,882                     9.4%

    Income tax provision                                   19,700                                 2.8%                             24,000                     3.5%
                                                           ------                                  ---                              ------                      ---

    Net income                                                        $32,525                               4.7%                                   $39,882           5.9%
                                                                      =======                                ===                                    =======            ===

    Per share data:

    Net income per common share-basic                                   $0.22                                                               $0.26
                                                                        =====                                                               =====

    Net income per common and common equivalent
     share-diluted                                                      $0.22                                                               $0.26
                                                                        =====                                                               =====

    Weighted average common shares outstanding-basic      143,378                                                      148,475
                                                          =======                                                      =======

    Weighted average common and common equivalent shares
     outstanding-diluted                                  143,771                                                      149,044
                                                          =======                                                      =======

    Dividends declared per share                                       $0.155                                                              $0.150
                                                                       ======                                                              ======



                                                    Chico's FAS, Inc. and Subsidiaries

                                                  Condensed Consolidated Balance Sheets

                                                               (Unaudited)

                                                              (in thousands)


                                                               May 2, 2015                 January 31, 2015       May 3, 2014
                                                               -----------               ----------------      -----------


                                                             ASSETS

    Current Assets:

    Cash and cash equivalents                                                    $97,651                             $133,351            $80,529

    Marketable securities, at fair value                            48,447                             126,561                 90,984

    Inventories                                                    270,313                             235,159                268,917

    Prepaid expenses and other current assets                       53,484                              51,088                 51,801

    Assets held for sale                                            24,042                              16,800                      -
                                                                    ------                              ------                    ---

    Total Current Assets                                           493,937                             562,959                492,231

    Property and Equipment, net                                    584,616                             606,147                636,614

    Other Assets:

    Goodwill                                                       145,627                             145,627                171,427

    Other intangible assets, net                                   108,449                             109,538                117,107

    Other assets, net                                               13,728                              14,310                 10,210
                                                                    ------                              ------                 ------

    Total Other Assets                                             267,804                             269,475                298,744
                                                                   -------                             -------                -------

                                                                              $1,346,357                           $1,438,581         $1,427,589
                                                                              ==========                           ==========         ==========


                                              LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities:

    Accounts payable                                                            $147,323                             $144,534           $148,858

    Current debt                                                    34,000                                   -                     -

    Other current and deferred liabilities                         171,161                             158,396                155,579
                                                                   -------                             -------                -------

    Total Current Liabilities                                      352,484                             302,930                304,437

    Noncurrent Liabilities:

    Long-term debt                                                  90,000                                   -                     -

    Deferred liabilities                                           142,185                             142,371                143,789

    Deferred taxes                                                  49,273                              49,659                 49,694
                                                                    ------                              ------                 ------

    Total Noncurrent Liabilities                                   281,458                             192,030                193,483

    Stockholders' Equity:

    Preferred stock                                                      -                                  -                     -

    Common stock                                                     1,434                               1,529                  1,532

    Additional paid-in capital                                     353,523                             407,275                385,730

    Treasury stock                                               (187,393)                                  -                     -

    Retained earnings                                              544,511                             534,255                542,332

    Accumulated other comprehensive income                             340                                 562                     75
                                                                       ---                                 ---                    ---

    Total Stockholders' Equity                                     712,415                             943,621                929,669
                                                                   -------                             -------                -------

                                                                              $1,346,357                           $1,438,581         $1,427,589
                                                                              ==========                           ==========         ==========



                                                                                           Chico's FAS, Inc. and Subsidiaries

                                                                                       Condensed Consolidated Cash Flow Statements

                                                                                                       (Unaudited)

                                                                                                     (in thousands)


                                                                                                                                          Thirteen Weeks Ended
                                                                                                                                          --------------------

                                                                                                                                   May 2, 2015              May 3, 2014
                                                                                                                                   -----------              -----------

    Cash Flows From Operating Activities:

    Net income                                                                                                                                    $32,525                         $39,882

    Adjustments to reconcile net income to net cash provided by operating activities -

    Depreciation and amortization                                                                                                       30,743                             30,083

    Loss on disposal and impairment of property and equipment                                                                            6,277                                  -

    Deferred tax benefit                                                                                                                 (425)                           (1,164)

    Stock-based compensation expense                                                                                                     7,631                              6,474

    Excess tax benefit from stock-based compensation                                                                                   (2,012)                             (925)

    Deferred rent and lease credits                                                                                                    (4,283)                           (4,671)

    Changes in assets and liabilities:

    Inventories                                                                                                                       (35,154)                          (30,772)

    Prepaid expenses and other assets                                                                                                  (3,468)                           (2,084)

    Accounts payable                                                                                                                   (8,979)                             6,111

    Accrued and other liabilities                                                                                                       18,884                             24,534
                                                                                                                                        ------                             ------

    Net cash provided by operating activities                                                                                           41,739                             67,468
                                                                                                                                        ------                             ------

    Cash Flows From Investing Activities:

    Purchases of marketable securities                                                                                                (18,252)                          (15,053)

    Proceeds from sale of marketable securities                                                                                         96,351                             40,063

    Purchases of property and equipment, net                                                                                          (19,839)                          (34,506)
                                                                                                                                       -------                            -------

    Net cash provided by (used in) investing activities                                                                                 58,260                            (9,496)
                                                                                                                                        ------                             ------

    Cash Flows From Financing Activities:

    Proceeds from borrowings                                                                                                           124,000                                  -

    Proceeds from issuance of common stock                                                                                               8,025                              2,945

    Excess tax benefit from stock-based compensation                                                                                     2,012                                925

    Dividends paid                                                                                                                    (11,076)                          (11,439)

    Repurchase of common stock                                                                                                       (258,450)                           (6,309)
                                                                                                                                      --------                             ------

    Net cash used in financing activities                                                                                            (135,489)                          (13,878)
                                                                                                                                      --------                            -------

    Effects of exchange rate changes on cash and cash equivalents                                                                        (210)                               (9)
                                                                                                                                          ----                                ---

    Net (decrease) increase in cash and cash equivalents                                                                              (35,700)                            44,085

    Cash and Cash Equivalents, Beginning of period                                                                                     133,351                             36,444
                                                                                                                                       -------                             ------

    Cash and Cash Equivalents, End of period                                                                                                      $97,651                         $80,529
                                                                                                                                                  =======                         =======


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 thirteen weeks ended May 2, 2015 and May 3, 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 (in thousands, except per share amounts):



                            Thirteen Weeks Ended
                            --------------------

                     May 2, 2015              May 3, 2014
                     -----------              -----------


    Numerator

    Net income                      $32,525                        $39,882

    Net income and
     dividends
     declared
     allocated to
     participating
     securities            (786)                          (1,055)
                            ----                            ------

    Net income
     available to
     common
     shareholders                   $31,739                        $38,827
                                    =======                        =======


    Denominator

    Weighted average
     common shares
     outstanding -
     basic               143,378                           148,475

    Dilutive effect
     of non-
     participating
     securities              393                               569
                             ---                               ---

    Weighted average
     common and
     common
     equivalent
     shares
     outstanding -
     diluted             143,771                           149,044
                         =======                           =======


    Net income per
     common share:

    Basic                             $0.22                          $0.26
                                      =====                          =====

    Diluted                           $0.22                          $0.26
                                      =====                          =====


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 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 and Diluted EPS

                                            (Unaudited)

                             (in thousands, except per share amounts)


                                                   Thirteen Weeks Ended
                                                  --------------------

                                         May 2, 2015                 May 3, 2014
                                         -----------                 -----------

    Net income:
    -----------

    GAAP basis                                           $32,525                      $39,882

    Impact of
     restructuring
     and
     strategic
     charges, net
     of tax                                    9,264                                -

    Non-GAAP
     adjusted
     basis                                               $41,789                      $39,882
                                                         =======                      =======


    Net income
     per diluted
     share:
    ------------

    GAAP basis                                             $0.22                        $0.26

    Impact of
     restructuring
     and
     strategic
     charges, net
     of tax                                     0.06                             0.00

    Non-GAAP
     adjusted
     basis                                                 $0.28                        $0.26
                                                           =====                        =====




                                                         Chico's FAS, Inc. and Subsidiaries

                                                           Store Count and Square Footage

                                                          Thirteen Weeks Ended May 2, 2015

                                                                     (Unaudited)


                                      January 31, 2015 New Stores              Closures           May 2, 2015
                                      ---------------- ----------              --------         -----------

    Store count:

    Chico's frontline boutiques                    613                      3                       (4)                       612

    Chico's outlets                                118                      1                       (1)                       118

    Chico's Canada                                   3                      1                                   -                    4

    WH|BM frontline boutiques                      441                      2                       (3)                       440

    WH|BM outlets                                   68                      1                                   -                   69

    WH|BM Canada                                     5                      1                                   -                    6

    Soma frontline boutiques                       263                      3                                   -                  266

    Soma outlets                                    17                      -                        -                        17

    Boston Proper frontline boutiques               19                      1                                   -                   20

    Total Chico's FAS, Inc.                      1,547                     13                       (8)                     1,552
                                                 =====                    ===                       ===                      =====


                                      January 31, 2015 New Stores              Closures     Other changes in SSF  May 2, 2015
                                      ---------------- ----------              --------     --------------------  -----------

    Net selling square footage (SSF):

    Chico's frontline boutiques              1,674,640                  7,807                   (9,709)                       325      1,673,063

    Chico's outlets                            295,600                  2,406                   (2,406)                         -       295,600

    Chico's Canada                               7,313                  2,382                         -                         -         9,695

    WH|BM frontline boutiques                1,010,242                  4,837                   (6,774)                     1,087      1,009,392

    WH|BM outlets                              141,900                  2,206                         -                         -       144,106

    WH|BM Canada                                12,460                  2,431                         -                         -        14,891

    Soma frontline boutiques                   498,642                  5,277                         -                   (1,199)       502,720

    Soma outlets                                31,672                      -                        -                         -        31,672

    Boston Proper frontline boutiques           33,035                  1,430                         -                         -        34,465

    Total Chico's FAS, Inc.                  3,705,504                 28,776                  (18,889)                       213      3,715,604
                                             =========                 ======                   =======                        ===      =========

As of May 2, 2015 the Company also sold merchandise through 33 international franchise locations.

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