Women’s wear retailer Chico’s FAS has reported plunge in sales in the fourth quarter ending January 30, 2016.
In the period under review, the retailer reported a net loss of US $ 21.1 million on sales of US $ 627.4 million compared with a net loss of US $ 31.8 million on sales of US $ 656.9 million in the corresponding period last year. Sales at stores plunged by 3.2 per cent in the reporting period.
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Shelley Broader, President and CEO of the company said, “While we are disappointed with our fourth-quarter sales, we are pleased that our responsiveness and disciplined inventory management in this intensely promotional environment allowed us to achieve positive gross margin leverage and a slight decline in total inventories over last year.”
The company is forestalling flat to slightly negative comparable sales in the second half of the current year. Besides, it is planning to open 25 new stores to expand its reach in the market.
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Headquartered in Ft. Myers, Florida, Chico’s is an American women’s clothing and accessories retailer. The company was founded by Marvin and Helene Gralnick. It operates four brands: namesake label Chico’s, White House | Black Market, Soma and Boston Proper.
