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Chico’s reports rise in Q2 earnings and net income

By Prachi Singh

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Announcing its financial results for the second quarter, Chico’s reported adjusted net income of 35.5 million dollars compared to net income of 30.1 million dollars for the thirteen weeks ended August 2, 2014. Adjusted earnings per diluted share were 0.25 dollar compared to earnings per diluted share of 0.20 dollar in last year's second quarter.

The second quarter adjusted results exclude net charges of 0.23 dollar per diluted share in 2015 related to the plan to exit Boston Proper and restructuring and strategic charges. Including the impact of the net charges, the company reported second quarter net income of 2.1 million dollars, or 0.02 dollar per diluted share.

New store additions boosts Q2 net sales

For the second quarter, net sales were 680.4 million dollars, an increase of 1.4 percent compared to 671.1 million dollars in last year's second quarter, primarily reflecting 23 net new stores for a square footage increase of 1.3 percent and a 0.5 percent increase in comparable sales. The 0.5 percent increase in comparable sales for the second quarter was on top of a 0.3 percent increase in last year's second quarter, and reflected an increase in average dollar sale partially offset by a decrease in transaction count.

For the second quarter, gross margin was 366 million dollars compared to 351.5 million dollars in last year's second quarter. Gross margin was 53.8 percent of net sales, a 140 basis point increase from last year's second quarter.

First half net income and earnings up

For the twenty-six weeks ended August 1, 2015, the company reported adjusted net income of 77.3 million dollars compared to net income of 70 million dollars for the twenty-six weeks ended August 2, 2014. Adjusted earnings per diluted share stood at 0.53 dollar compared to 0.46 dollar in the same period last year.

Chico's