Chico's posts rise in Q4 and FY16 net income

For the fifty-two weeks ended January 28, 2017, the company reported net income of 91.2 million dollars or 0.69 dollar per diluted share, compared to net income of 1.9 million dollars or 0.01 dollar per diluted share, for the year ended January 30, 2016. The company reported fiscal 2016 adjusted net income of 106.7 million dollars or 0.81 dollar compared to 105.9 million dollars or 0.75 dollar adjusted earnings per diluted share, in fiscal 2015.

"We are extremely pleased with our results this quarter," said Shelley Broader, CEO and President in a media release, adding, "We drove significant earnings growth, highlighted by gross margin expansion, SG&A leverage, and a substantial increase in operating margin. I am proud of our team and their continuing execution of our strategic initiatives."

Fourth quarter net sales decline 4.9 percent

For the thirteen weeks ended January 28, 2017, the company reported net income of 13.5 million dollars or 0.10 dollar per diluted share, compared to a net loss of 21.1 million dollars or 0.16 dollar per diluted share, for the same period ended January 30, 2016. The company reported adjusted net income of 6.2 million dollars or 0.05 dollar adjusted earnings per diluted share, in last year's fourth quarter.

Net sales for the quarter were 600.8 million dollars compared to 631.6 million dollars in last year's fourth quarter. This decrease of 4.9 percent included 16.8 million dollars related to Boston Proper last year. Excluding Boston Proper from fiscal 2015, net sales decreased 2.3 percent, primarily reflecting a decline in comparable sales of 2.5 percent.

Chico’s reports 6.9 percent drop in FY16 sales

For fiscal 2016, net sales were 2.5 billion dollars compared to 2.7 billion dollars in fiscal 2015. The company said, this decrease of 6.9 percent included 87 million dollars related to Boston Proper last year. Excluding Boston Proper, net sales decreased 3.8 percent, primarily reflecting a decline in comparable sales of 3.7 percent.

For fiscal 2017, the company is anticipating a low single-digit percentage decline in comparable sales as the company continues to rationalize its promotional activity. The company expects to achieve gross margin leverage for the year due to reduced promotional activity and savings from the supply chain initiative launched last year.

Picture:Chico's