Chico’s Q4 and FY15 earnings witness a decline

For the thirteen weeks ended January 30, 2016, Chico’s reported adjusted earnings per diluted share of 0.05 dollars, compared to 0.07 dollar for the fourth quarter ended January 31, 2015, and adjusted net income of 6.2 million dollars compared to 10.9 million dollars in last year's fourth quarter. For the fiscal year, the company reported adjusted earnings per diluted share of 0.75 dollar compared to 0.73 dollars for the same period ended January 31, 2015 and adjusted net income of 105.9 million dollars compared to 111.9 million dollars in fiscal 2014.

”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. Additionally, our business generated significant cash flow during the fiscal year, which in combination with our healthy balance sheet, allowed us to return 334 million dollars to our shareholders in the form of dividends and share repurchases," said Shelley Broader, President and CEO.

Fourth quarter and FY15 highlights

For the fourth quarter, net sales were 627.4 million dollars, a decrease of 4.5percent, primarily due to a 3.2 percent decrease in comparable sales and a decline in Boston Proper sales. For fiscal 2015, net sales were 2.642 billion dollars, a decrease of 1.2 percent reflecting a 1.5 percent decrease in comparable sales and a decline in Boston Proper sales, partially offset by the benefit of new stores. Comparable sales decreased 1.5 percent.

2016 full-year outlook

The fiscal 2016 outlook excludes Boston Proper for comparability purposes. The absence of Boston Proper's operational results are expected to benefit fiscal 2016 operating margin by approximately 100 basis points and earnings per share by approximately 0.09 dollar. For the full year of fiscal 2016, the company is anticipating flat to slightly negative comparable sales, with more opportunity for positive growth in the back half of the year.

The company aims to open approximately 25 stores while closing an additional 50 stores in its efforts to continue capital allocation and cost reduction initiatives.