Chico’s posts ‘disappointing’ results

Source: Retail Digital

Date :8/26/2008 4:14:29 AM

Chico’s FAS Inc has reported that net sales in the second quarter fell 7.1 percent to US$405.2 million from US$436 million a year earlier.

Scott A. Edmonds, Chairman, President and CEO said the results were disappointing but that the company continues to be encouraged by its initial reads on fall offerings.

“While we anticipate consolidated comparable store sales for the fall season to remain negative, we expect to see an improvement in trend and continue to believe we will be profitable in the second half,” he added.

Net income was also down at the retailer to US$6.7 million, or US$0.04 per diluted share, from US$38.7 million or US$0.22 per diluted share in year earlier quarter.

“We remain focused on reducing expenses and managing lower inventory levels without affecting our ability to serve our customers,” explained Edmonds.