Chico’s FAS Inc., a leading omni-channel specialty retailer, has announced its financial results for the third quarter of the fiscal 2016 ended October 29, 2016. The company reported net income of US $ 23.6 million compared to a net loss of US $ 11.6 million in the corresponding period last year.
In the period under review, the retailer’s net sales stood at US $ 596.9 million, down by 7.5 per cent compared to US $ 645.4 million during last year’s third quarter. Chico’s FAS reported adjusted net income of US $ 26.4 million as against adjusted net income of US $ 17.7 million in the comparable period previous year. Comparable sales stood at 5.6 per cent for the Chico’s brand. Other brand’s comparable sales such as White House Black Market and Soma were 5.5 per cent and 0.4 per cent respectively.
The company also unveiled their results for the thirty nine weeks ended October 29, 2016. In this period, net income totalled US $ 77.7 million compared to net income of US $ 23 million in prior year. The adjusted net income amounted to US $ 93.2 million while it was US $ 99.7 million in last fiscal. Comparable sales for Chico’s and White House Black Market stood at 5.4 per cent and 3.5 per cent. However, it was 0.6 per cent for Soma brand.
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Shelley Broader, CEO and President, Chico’s FAS said, “Our third quarter earnings exceeded expectations. 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.”
For the fourth quarter outlook of FY ’16, the company is anticipating a low single digit comparable sales decline in the fourth quarter compared to last year.
Chico’s FAS caters to women’s private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items through its brands – Chico’s, White House Black Market.
