US retailer Chico’s FAS’ operating income more than doubles in FY22

Chico’s FAS, a US-based women’s clothing retailer, has reported operating income of $142.1 million, or 6.6 per cent of net sales in fiscal 2022 (FY22), compared to $66.6 million, or 3.7 per cent of net sales, in the prior year. The company’s net sales increased to $2,142 million, reflecting an 18.3 per cent increase year-over-year (YoY), primarily due to a comparable sales increase of 19.6 per cent.

In FY22, the company’s net income increased to $109 million compared to $46.2 million in fiscal 2021, while the diluted earnings per share (EPS) was $0.88. Gross margin rate increased to 39.1 per cent of net sales, Chico’s FAS said in a press release.

Chico’s FAS has reported operating income of $142.1 million, or 6.6 per cent of net sales in fiscal 2022, compared to $66.6 million, or 3.7 per cent of net sales, in the prior year. The company’s net sales increased to $2,142 million, reflecting an 18.3 per cent increase year-over-year (YoY), primarily due to a comparable sales increase of 19.6 per cent.

The company’s selling, general, and administrative expenses in FY22 were $696.3 million, or 32.5 per cent of net sales, compared to $597.4 million, or 33.0 per cent of net sales during the prior year.

For the fourth quarter (Q4) of FY22, Chico’s FAS reported a net income of $7.5 million, or $0.06 per diluted share, compared to net income of $10.7 million, or $0.09 per diluted share, for Q4 FY21. The company’s net sales for the quarter were $524.1 million compared to $496.3 million in last year’s fourth quarter, primarily reflecting a comparable sales increase of 6.1 per cent. The company’s gross margin rate for the fourth quarter was 34.9 per cent of net sales, compared to 34.5 per cent of net sales in last year’s fourth quarter. Furthermore, the diluted EPS was $0.06.

Looking ahead, for the fiscal 2023, the company currently expects consolidated net sales of $2,220 million to $2,250 million, a gross margin rate as a per cent of net sales of 39.4 per cent to 39.8 per cent, selling, general, and administrative expenses as a per cent of net sales of 33.0 per cent to 33.4 per cent, and earnings per diluted share of $0.79 to $0.91.

For the first quarter of fiscal 2023, the company currently expects consolidated net sales of $535 million to $550 million, a gross margin rate as a per cent of net sales of 41.3 per cent to 41.8 per cent, selling, general, and administrative expenses as a per cent of net sales of 32.8 per cent to 33.3 per cent, and earnings per diluted share of $0.26 to $0.30.

“Apparel led our revenue growth this year, with Chico’s posting a 31 per cent comparable sales increase and White House Black Market generating a 26 per cent comparable sales gain. Customers responded to our elevated fashion and product offerings across apparel categories, and we achieved faster sell-through rates, higher productivity, and more full-priced sales. Our Soma performance improved in the second half of the year, with particular strength in our foundations business,” said Molly Langenstein, Chico’s FAS chief executive officer and president.

Fibre2Fashion News Desk (DP)