Chico’s reports Q3 loss, comparable sales down 2.2 percent
Chico’s FAS, Inc. has said that net sales for the third quarter were 484.7 million dollars, a decrease of 3 percent, which reflects a comparable sales decline of 2.2 percent as well as the impact of 58 net store closures since last year’s third quarter. Net loss for the period was 8.1 million dollars or 7 cents per diluted share, compared to net income of 6.5 million dollars or 5 cents earnings per diluted share, for the same quarter last year. The company reported third quarter adjusted net loss of 4.6 million dollars or 4 cents loss per diluted share.
“Our third quarter results demonstrate that we are gaining traction on our strategic priorities,” said Bonnie Brooks, Chico’s CEO and President, adding, “I firmly believe the company’s turnaround is on the right track, and we have updated our full-year financial outlook to reflect the positive momentum of our business.”
Chico’s expects low-single-digit sales decline in Q4
For the thirty-nine weeks ended November 2, 2019, the Company reported a net loss of 8.4 million dollars or 7 cents loss per diluted share, compared to net income of 52.3 million dollars or 41 cents earnings per diluted share, for the thirty-nine weeks ended November 3, 2018, while adjusted net income for the period was 0.9 million dollars or 1 cent per diluted share.
For the fiscal 2019 fourth quarter, the company anticipates a low single-digit decline in total net sales and consolidated comparable sales. The company expects gross margin as a percent of net sales to be down approximately 100 to 150 basis points, due primarily to incremental costs from tariffs.
For full year fiscal 2019, the company anticipates a mid single-digit decline in total net sales and consolidated comparable sales. The company expects gross margin as a percent of net sales to be down 150 to 200 basis points consistent with previous guidance, which now includes consideration of incremental costs in the second half of fiscal 2019 associated with tariffs.
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