Chico's posts net income of 101 mn dollars for FY17

For the fourteen weeks ended February 3, 2018, Chico’s FAS Inc. reported net income of 28 million dollars or 0.22 dollar per diluted share compared to 13.5 million dollars or 0.10 dollar per diluted share, for the thirteen weeks ended January 28, 2017. For the fifty-three weeks, the company reported net income of 101 million dollars or 0.79 dollar per diluted share compared to 91.2 million dollars or 0.69 dollar per diluted share, for the fifty-two weeks ended January 28, 2017.

"Our fourth quarter results exceeded expectations and demonstrate clear progress in the execution of our strategic initiatives to drive improved performance and value creation," said Shelley Broader, Chico’s CEO and President in a media release.

Q4 net sales down 2.2 percent at Chico’s

For the fourth quarter, net sales were 587.8 million dollars compared to 600.8 million dollars in last year's fourth quarter, a decrease of 2.2 percent that reflects a comparable sales decline of 5.2 percent as well as a decrease in selling square footage in fiscal 2017, partially offset by the 29 million dollars benefit of the 53rdweek.

For fiscal 2017, net sales were 2.3 billion dollars compared to 2.5 billion dollars in fiscal 2016, a decrease of 7.8 percent that was driven by comparable sales decline of 7.7 percent as well as a decrease in selling square footage in fiscal 2017.

For the fourth quarter, gross margin was 221.6 million dollars or 37.7 percent of net sales, compared to 213.4 million dollars or 35.5 percent of net sales, in last year's fourth quarter. This 220 basis point increase, the company said, primarily reflects a 170 basis point improvement in merchandise margin driven by lower average unit costs and a reduction in store occupancy costs.

For fiscal 2018, the company is anticipating a low single-digit decline in consolidated comparable sales with comparable sales performance stronger in the second half of the year compared to the first half. The company expects gross margin expansion in the range of 125 to 150 basis points over fiscal 2017, driven by decreased average unit costs and planned improvement in promotions.

Picture:Facebook/Chico's