Record-Setting Chico's

Chico's FAS Inc. (Fort Myers, Fla.) announced a 38.7 percent increase in net sales for its second quarter ending Aug. 2, 2003.

Net income for the quarter was up 49.3 percent, to a record $24.5 million. Same-store sales for the company-owned locations increased 14.6 percent.

For the six months ended August 2, 2003, net sales increased 34 percent and net income rose 32.3 percent. Same-store sales increased 11.2 percent.

“We focused on our summer transitional line this year and it paid off in a stronger initial markup and a lower year-over-year markdown rate as reflected in our 62 percent gross margin in the second quarter of this year,” said president and coo Scott Edmonds. “This resulted in our best-ever second quarter operating margin of 22.6 percent, which for the first time has exceeded the first quarter. We believe that these results underscore the ongoing appeal of our concept, our fresh merchandise strategy and our excellent marketing strategies.”

Chico's sells exclusively designed, private-label women's clothing and related accessories through 418 specialty stores under the name of Chico's and Pazo, in 42 states and the District of Columbia. The company owns 375 Chico's front-line stores, 21 Chico's outlet stores and 10 Pazo stores; franchisees own and operate 12 Chico's stores.

The retailer is also in the process of completing its acquisition of the 103-unit White House Inc. (Glen Burnie, Md.), which operates White House/Black Market specialty apparel stores aimed at women 30 to 50.