Chico’s net sales up 3.4 percent in FY14

For fiscal 2014, net sales at Chico’s were 2.675 billion dollars, an increase of 3.4 percent compared to 2.586 billion dollars in fiscal 2013, primarily reflecting 75 net new stores for a square footage increase of 4.5 percent. Comparable sales were flat for 2014 compared to a 1.8 percent decrease in 2013.

For the fourth quarter, net sales were 656.9 million dollars, an increase of 7.6 percent compared to 610.2 million dollars in last year's fourth quarter, primarily reflecting 75 net new stores and a 4.3 percent increase in comparable sales. The 4.3 percent increase in comparable sales for the fourth quarter was following a 3.4 percent decrease in last year's fourth quarter.

Commenting on the result, David Dyer, President and Chief Executive Officer, Chico's said, "While the overall apparel retail environment remains challenging, we expect the new capital allocation and cost reduction initiatives announced today will further strengthen Chico's and its brands."

For the thirteen weeks ended January 31, 2015, the company reported adjusted net income of 7.5 million dollars compared to adjusted net income of 5.9 million dollars for the thirteen weeks ended February 1, 2014, and fourth quarter 2014 adjusted earnings per diluted share of 0.05 dollars compared to 0.04 dollars in last year's fourth quarter. The company reported a fourth quarter 2014 net loss of 31.8 million dollars, or 0.21 dollars per diluted share.

For the 52-weeks ended January 31, 2015, Chico’s adjusted net income stood at 104 million dollars compared to adjusted net income of 137 million dollars for the 52-weeks ended February 1, 2014, and adjusted earnings per diluted share of 0.68 dollars compared to 0.85 dollars in fiscal 2013.

For the fourth quarter, gross margin was 50 percent of net sales, a 70 basis point decrease from last year's fourth quarter, primarily reflecting increased promotional activity to sell through product delayed by port issues and seasonal merchandise as well as an impairment charge related to non-go-forward inventory. The company expects the impact of port delays to continue in fiscal 2015.

For the full year of fiscal 2015, the company is anticipating a positive, low-single digit comparable sales increase and improvement in gross margin rate in 2015 compared to the prior year.