Chico's sales drop 38.9 percent in the second quarter

Chico’s FAS, Inc., for the thirteen weeks reported a net loss of 46.8 million dollars or 40 cents loss per diluted share compared to net loss of 2.3 million or 2 cents loss per diluted share for the same quarter last year. Net sales were 306.2 million dollars, an improvement of 9.2 percent from the first quarter, reflecting the benefit of strong digital sales and store reopenings. The company said in a statement that sales decreased approximately 39.8 percent from last year’s second quarter, reflecting disruptions related to the pandemic, including the continuation of temporary store closures and limited hours during the second quarter, as well as the impact of 74 net permanent store closures since last year’s second quarter, partially offset by double-digit growth in digital performance.

Commenting on the company’s performance, Molly Langenstein, Chief Executive Officer and President, Chico’s FAS said: “Our core strengths - three distinctive brands with new product being well received, a strong digital platform, a differentiated real estate portfolio, our loyal customer base and solid balance sheet position us for success. We are taking advantage of this unprecedented period by capitalizing on these strengths and staying laser focused on continuing our successful turnaround strategy, including accelerating digital growth.”

Gross margin for the quarter was 44.8 million dollars or 14.6 percent of net sales, up more than 1,800 basis points from the first quarter. Gross margin in last year’s second quarter was 168.6 million dollars, or 33.2 percent of net sales. For the twenty-six weeks ended August 1, 2020, the company reported a net loss of 225.1 million dollars or 1.95 dollars loss per diluted share, compared to net loss of 0.3 million dollars for the twenty-six weeks ended August 3, 2019.

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