Chico’s Q1 net loss contracts, sales up 38.4 percent

For the first quarter, Chico’s FAS Inc., reported a net loss of 8.9 million dollars or 8 cents loss per diluted share compared to a net loss of 178.3 million dollars or 1.55 dollars loss per diluted share, for last year’s first quarter. Net sales for the quarter were 388 million dollars, 38.4 percent increase.

“Our first quarter results underscore the tremendous progress we are making in our turnaround strategy and the power of our three unique brands and being a digital-first, customer-led company,” said Molly Langenstein, Chico’s chief executive officer and president in a release.

Highlights of Chico’s Q1 financial results

The company said, sales increase primarily reflects the impact of temporary store closures during last year’s first quarter, partially offset by 39 net permanent store closures since last year’s first quarter.

Total comparable sales for the quarter compared to the first quarter of fiscal 2019 were down 21.7 percent, Soma was up 39.3 percent and the apparel brands were down 32.9 percent.

For the first quarter, gross margin was 126.8 million dollars or 32.7 percent of net sales compared to negative 11.1 million dollars or negative 4 percent of net sales, in last year’s first quarter.

For fiscal 2021, the company expects consolidated year-over-year net sales improvement between 28 percent to 34 percent and gross margin rate improvement of 18 to 20 percentage points over last fiscal year.