Chico's witnesses decline in Q1 profit and net sales

For the thirteen weeks ended April 30, 2016, Chico’s reported net income of 31.1 million dollars or 0.23 dollar per diluted share, compared to 32.5 million dollars or 0.22 dollar per diluted share, for the thirteen weeks ended May 2, 2015. The adjusted net income was 33.4 million dollars, or 0.25 dollar adjusted earnings per diluted share, compared to 44.5 million dollars or 0.30 dollar adjusted earnings per diluted share, in last year's first quarter.

Commenting on the company’s results, Shelley Broader, CEO and President, said, "In the first quarter, our loyal customers continued to be attracted to our brands. Our overall store traffic trended better than our peer index and when she visited our stores she was buying, although weak traffic across the industry impacted our overall sales."

For the first quarter, net sales were 643 million dollars compared to 697.8 million dollars in last year's first quarter. This decrease of 7.9 percent included 25.3 million dollars related to Boston Proper. When excluding Boston Proper from fiscal 2015, net sales decreased 4.4 percent, primarily reflecting a decline in comparable sales of 4.2 percent and 15 net store closures. The 4.2 percent decrease in comparable sales followed a 0.1 percent decrease in last year's first quarter.

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