Chico’s FAS Inc. (Fort Myers, Fla.) has announced a 34.6 percent increase in net sales for the second quarter ended July 30, 2005. Net income rose 38.4 percent. Same-store sales for the company-owned stores increased 15.7 percent.
For the six months ended July 30, net sales increased 31 percent, to a record $670 million. Net income rose 35.3 percent. And same-store sales for company-owned stores increased 13.2 percent.
The specialty apparel retailer said it is planning to open approximately 20 percent net new square footage combined for the Chico’s and White House | Black Market brands in fiscal 2006, taking into account approximately 105 to 120 net new company-owned stores and increased square footage from 30-40 relocations and/or expansions. It is currently anticipated that new Chico’s and White House | Black Market stores in 2006, for the most part, will be somewhat larger than the average existing store size for the respective brand. Currently, the company plans that approximately 60 percent of these new stores will be Chico’s stores, with the balance being White House | Black Market stores. The company also announced plans to open 20 new Soma by Chico’s stores during fiscal 2006.
“The second quarter came in with very strong results as we generated an operating margin in excess of 22 percent, a sales increase of 35 percent, and a net income increase of over 38 percent,” said president and ceo Scott Edmonds. “Second quarter gross margins for the core Chico’s brand were somewhat off from last year’s gross margins while White House | Black Market’s gross margins were up 270 basis points on a quarter over quarter basis. Looking at the potential third quarter results, we are pleased with our same-store sales trends thus far in August. Overall, we are experiencing same-store sales in the low double digit range, with the Chico’s brand in the high single digits range and the White House | Black Market brand again experiencing much stronger same-store sales up in the mid 40 percent range.”