UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report: (Date of earliest event reported): November 24, 2015
Chico’s FAS, Inc.
(Exact Name of Registrant as Specified in its Charter)
Florida
(State or Other Jurisdiction of Incorporation)
|
| | |
| | |
001-16435 | | 59-2389435 |
(Commission File Number) | | (IRS Employer Identification No.) |
|
| | |
| | |
11215 Metro Parkway, Fort Myers, Florida | | 33966 |
(Address of Principal Executive Offices) | | (Zip code) |
(239) 277-6200
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|
| |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
| |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
| |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
| |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
On November 24, 2015, Chico’s FAS, Inc. (the “Company”) issued a press release announcing its third quarter and year-to-date earnings for the period ended October 31, 2015. A copy of the release issued on November 24, 2015 is attached to this Report as Exhibit 99.1 and is incorporated by reference herein.
Item 8.01 Other Events.
On November 24, 2015, the Company elected to disclose a reconciliation of selected consolidated financial data on a GAAP basis to selected consolidated financial data on a non-GAAP adjusted basis, when excluding Boston Proper for each of the thirteen weeks ending May 2, 2105, August 1, 2015, October 31, 2015 and the year-to-date period ending October 31, 2015. Management believes that certain non-GAAP results, which exclude results from non-continuing operations, may provide a more meaningful measure on which to compare the Company’s results of operations between periods. A copy of the selected financial data is attached to this Report as Exhibit 99.2 and is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
|
| | |
Exhibit 99.1 | | Press Release of Chico’s FAS, Inc. dated November 24, 2015 |
Exhibit 99.2 | | Reconciliation of Reported to Adjusted Consolidated Financial Data,
Excluding Boston Proper
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
| | | | | | |
| | | | | | |
| | | | | | CHICO’S FAS, INC. |
| | | |
Date: November 24, 2015 | | | | | | By: |
| | | | | | /s/ Todd E. Vogensen |
| | | | | | Todd E. Vogensen, Executive Vice President, Chief Financial Officer and Assistant Corporate Secretary |
INDEX TO EXHIBITS
|
| | |
| | |
Exhibit Number | | Description |
| |
Exhibit 99.1 | | Press Release of Chico’s FAS, Inc. dated November 24, 2015 |
Exhibit 99.2 | | Reconciliation of Reported to Adjusted Consolidated Financial Data,
Excluding Boston Proper |
Chico’s FAS, Inc. • 11215 Metro Parkway • Fort Myers, Florida 33966 • (239) 277-6200
Chico's FAS, Inc. Reports Third Quarter Results
Fort Myers, FL - November 24, 2015 - Chico’s FAS, Inc. (NYSE: CHS) today announced its financial results for the fiscal 2015 third quarter and thirty-nine weeks ended October 31, 2015.
For the thirteen weeks ended October 31, 2015 ("the third quarter"), the Company reported adjusted net income of $17.7 million compared to adjusted net income of $28.9 million for the thirteen weeks ended November 1, 2014, and third quarter 2015 adjusted earnings per diluted share of $0.13 compared to adjusted earnings per diluted share of $0.19 in last year’s third quarter. During the third quarter we signed a non-binding letter of intent to sell the Boston Proper direct-to-consumer ("DTC") business. The third quarter adjusted results exclude net charges of $0.22 per diluted share in 2015 and $0.02 per diluted share in last year's third quarter related to Boston Proper and restructuring and strategic charges (the "Net Charges"), as presented in the accompanying GAAP to Non-GAAP Reconciliation. Including the impact of the Net Charges, the Company reported a third quarter 2015 net loss of $11.6 million, or $0.09 per diluted share, compared to net income of $26.5 million, or $0.17 per diluted share, in last year’s third quarter.
For the thirty-nine weeks ended October 31, 2015, the Company reported adjusted net income of $99.7 million compared to adjusted net income of $101.2 million for the thirty-nine weeks ended November 1, 2014, and adjusted earnings per diluted share of $0.70 compared to adjusted earnings per diluted share of $0.66 in the same period last year. The adjusted results exclude Net Charges of $0.54 per diluted share in 2015 and $0.03 per diluted share in the same period last year, as presented in the accompanying GAAP to Non-GAAP Reconciliation. Including the impact of the Net Charges, the Company reported net income of $23.0 million, or $0.16 per diluted share, in 2015 compared to net income of $96.5 million, or $0.63 per diluted share, in the same period last year.
Net Sales
For the third quarter, net sales were $641.2 million, a decrease of 3.7% compared to $665.6 million in last year’s third quarter, primarily reflecting a 3.3% decrease in comparable sales and a 0.8% net decrease in selling square footage. The 3.3% decrease in comparable sales for the third quarter follows a 1.6% decrease in last year’s third quarter, and reflects a decrease in average dollar sale and transaction count.
Comparable Sales
|
| | | | | | | | | | | |
| Thirty-Nine Weeks Ended | | Thirteen Weeks Ended |
| October 31, 2015 | | November 1, 2014 | | October 31, 2015 | | November 1, 2014 |
Chico's | (2.1 | )% | | (0.9 | )% | | (4.7 | )% | | (2.6 | )% |
White House | Black Market | (0.8 | )% | | (4.0 | )% | | (2.0 | )% | | (1.4 | )% |
Soma | 3.6 | % | | 5.7 | % | | (0.9 | )% | | 3.7 | % |
Total Company | (1.0 | )% | | (1.3 | )% | | (3.3 | )% | | (1.6 | )% |
Gross Margin
For the third quarter, gross margin was $350.5 million compared to $363.8 million in last year’s third quarter. Gross margin was 54.7% of net sales in the third quarter, in line with the same period last year.
Selling, General and Administrative Expenses
For the third quarter, selling, general and administrative expenses (“SG&A”) were $327.6 million compared to $321.6 million in last year’s third quarter. SG&A was 51.1% of net sales, a 280 basis point increase from last year’s third quarter, primarily reflecting sales deleverage as well as an increase in store occupancy and point-of-sale implementation costs.
Restructuring and Strategic Charges
For the third quarter, the Company recorded pre-tax restructuring and strategic charges of $3.1 million, primarily consisting of lease termination charges for the Boston Proper stores. On an after-tax basis, the third quarter impact of these charges was $1.9 million, or $0.01 per diluted share.
Impairment Charges
For the third quarter of fiscal 2015, based on market indications of value, the Company determined that certain Boston Proper intangibles were impaired and recorded $45.5 million in pre-tax, non-cash trade name and customer relationship impairment charges. On an after-tax basis, third quarter impairment charges were $23.9 million, or $0.18 per diluted share.
Income Tax Benefit
Excluding the net tax benefits related to the plan to exit Boston Proper and the tax impact of restructuring and strategic charges, the 2015 third quarter effective tax rate would have been 37.0% compared to an effective tax rate of 37.4% for the same period last year.
Inventories
At the end of the third quarter of 2015, total inventories totaled $280.0 million, when including inventory related to the Boston Proper DTC business. Total inventories decreased 4.8% compared to $294.2 million in last year's third quarter, primarily reflecting improved inventory management.
Assets and Liabilities Held for Sale
At the end of the third quarter of 2015, current assets included $41.8 million in assets held for sale, primarily comprised of $18.3 million in Boston Proper DTC assets and $16.5 million in vacant land. Current liabilities included $8.5 million in Boston Proper DTC liabilities held for sale.
ABOUT CHICO’S FAS, INC.
The Company, through its brands – Chico's, White House | Black Market, Soma, and Boston Proper, is a leading omni-channel specialty retailer of women’s private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items.
As of October 31, 2015, the Company operated 1,546 stores in the US and Canada and sold merchandise through franchise locations in Mexico. The Company’s merchandise is also available at www.chicos.com, www.whbm.com, www.soma.com, and www.bostonproper.com. For more detailed information on Chico's FAS, Inc., please go to our corporate website at www.chicosfas.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Certain statements contained herein, including without limitation, statements addressing the beliefs, plans, objectives, estimates or expectations of the Company or future results or events constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known or unknown risks, including, but not limited to, general economic and business conditions, and conditions in the specialty retail industry. There can be no assurance that the actual future results, performance, or achievements expressed or implied by such forward-looking statements will occur. Investors using forward-looking statements are encouraged to review the Company’s latest annual report on Form 10-K, its filings on Form 10-Q, management’s discussion and analysis in the Company’s latest annual report to stockholders, the Company’s filings on Form 8-K, and other federal securities law filings for a description of other important factors that may
affect the Company’s business, results of operations and financial condition. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that projected results expressed or implied in such statements will not be realized.
(Financial Tables Follow)
Executive Contact:
Jennifer Powers Adkins
Vice President – Investor Relations
Chico’s FAS, Inc.
(239) 346-4199
Chico’s FAS, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Thirty-Nine Weeks Ended | | Thirteen Weeks Ended |
| October 31, 2015 | | November 1, 2014 | | October 31, 2015 | | November 1, 2014 |
| Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales |
Net sales: | | | | | | | | | | | | | | | |
Chico's | $ | 1,054,367 |
| | 52.3 | % | | $ | 1,069,833 |
| | 53.1 | % | | $ | 332,033 |
| | 51.8 | % | | $ | 347,562 |
| | 52.3 | % |
White House | Black Market | 657,082 |
| | 32.6 | % | | 655,639 |
| | 32.5 | % | | 220,125 |
| | 34.3 | % | | 224,552 |
| | 33.7 | % |
Soma | 238,159 |
| | 11.8 | % | | 220,406 |
| | 10.8 | % | | 71,749 |
| | 11.2 | % | | 70,668 |
| | 10.6 | % |
Boston Proper | 65,302 |
| | 3.3 | % | | 72,426 |
| | 3.6 | % | | 17,312 |
| | 2.7 | % | | 22,787 |
| | 3.4 | % |
Total net sales | 2,014,910 |
| | 100.0 | % | | 2,018,304 |
| | 100.0 | % | | 641,219 |
| | 100.0 | % | | 665,569 |
| | 100.0 | % |
Cost of goods sold | 902,690 |
| | 44.8 | % | | 920,148 |
| | 45.6 | % | | 290,737 |
| | 45.3 | % | | 301,776 |
| | 45.3 | % |
Gross margin | 1,112,220 |
| | 55.2 | % | | 1,098,156 |
| | 54.4 | % | | 350,482 |
| | 54.7 | % | | 363,793 |
| | 54.7 | % |
Selling, general and administrative expenses | 964,229 |
| | 47.9 | % | | 945,360 |
| | 46.8 | % | | 327,575 |
| | 51.1 | % | | 321,574 |
| | 48.3 | % |
Goodwill and intangible impairment charges | 112,455 |
| | 5.6 | % | | — |
| | 0.0 | % | | 45,514 |
| | 7.1 | % | | — |
| | 0.0 | % |
Restructuring and strategic charges | 34,178 |
| | 1.6 | % | | — |
| | 0.0 | % | | 3,137 |
| | 0.5 | % | | — |
| | 0.0 | % |
Income (loss) from operations | 1,358 |
| | 0.1 | % | | 152,796 |
| | 7.6 | % | | (25,744 | ) | | (4.0 | )% | | 42,219 |
| | 6.4 | % |
Interest (expense) income, net | (1,421 | ) | | (0.1 | )% | | 75 |
| | 0.0 | % | | (466 | ) | | (0.1 | )% | | 44 |
| | 0.0 | % |
Income (loss) before income taxes | (63 | ) | | 0.0 | % | | 152,871 |
| | 7.6 | % | | (26,210 | ) | | (4.1 | )% | | 42,263 |
| | 6.4 | % |
Income tax (benefit) provision | (23,100 | ) | | (1.1 | )% | | 56,400 |
| | 2.8 | % | | (14,600 | ) | | (2.3 | )% | | 15,800 |
| | 2.4 | % |
Net income (loss) | $ | 23,037 |
| | 1.1 | % | | $ | 96,471 |
| | 4.8 | % | | $ | (11,610 | ) | | (1.8 | )% | | $ | 26,463 |
| | 4.0 | % |
Per share data: | | | | | | | | | | | | | | | |
Net income (loss) per common share-basic | $ | 0.16 |
| | | | $ | 0.63 |
| | | | $ | (0.09 | ) | | | | $ | 0.17 |
| | |
Net income (loss) per common and common equivalent share–diluted | $ | 0.16 |
| | | | $ | 0.63 |
| | | | $ | (0.09 | ) | | | | $ | 0.17 |
| | |
Weighted average common shares outstanding–basic | 139,386 |
| | | | 148,577 |
| | | | 136,172 |
| | | | 148,564 |
| | |
Weighted average common and common equivalent shares outstanding–diluted | 139,724 |
| | | | 149,093 |
| | | | 136,172 |
| | | | 149,037 |
| | |
Dividends declared per share | $ | 0.2325 |
| | | | $ | 0.2250 |
| | | | $ | — |
| | | | $ | — |
| | |
Chico’s FAS, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
|
| | | | | | | | | | | |
| October 31, 2015 | | January 31, 2015 | | November 1, 2014 |
| | | | | |
ASSETS | | | | | |
Current Assets: | | | | | |
Cash and cash equivalents | $ | 91,256 |
| | $ | 133,351 |
| | $ | 67,172 |
|
Marketable securities, at fair value | 47,316 |
| | 126,561 |
| | 124,042 |
|
Inventories | 268,968 |
| | 235,159 |
| | 294,234 |
|
Prepaid expenses and other current assets | 98,305 |
| | 51,088 |
| | 52,062 |
|
Assets held for sale | 41,802 |
| | 16,800 |
| | — |
|
Total Current Assets | 547,647 |
| | 562,959 |
| | 537,510 |
|
Property and Equipment, net | 556,172 |
| | 606,147 |
| | 641,187 |
|
Other Assets: | | | | | |
Goodwill | 96,774 |
| | 145,627 |
| | 171,427 |
|
Other intangible assets, net | 38,930 |
| | 109,538 |
| | 114,927 |
|
Other assets, net | 13,691 |
| | 14,310 |
| | 12,897 |
|
Total Other Assets | 149,395 |
| | 269,475 |
| | 299,251 |
|
| $ | 1,253,214 |
| | $ | 1,438,581 |
| | $ | 1,477,948 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current Liabilities: | | | | | |
Accounts payable | $ | 147,526 |
| | $ | 144,534 |
| | $ | 162,641 |
|
Current debt | 10,000 |
| | — |
| | — |
|
Other current and deferred liabilities | 140,557 |
| | 158,396 |
| | 145,972 |
|
Liabilities held for sale | 8,478 |
| | — |
| | — |
|
Total Current Liabilities | 306,561 |
| | 302,930 |
| | 308,613 |
|
Noncurrent Liabilities: | | | | | |
Long-term debt | 84,702 |
| | — |
| | — |
|
Deferred liabilities | 135,390 |
| | 142,371 |
| | 146,715 |
|
Deferred taxes | 20,385 |
| | 49,659 |
| | 42,306 |
|
Total Noncurrent Liabilities | 240,477 |
| | 192,030 |
| | 189,021 |
|
Stockholders’ Equity: | | | | | |
Preferred stock | — |
| | — |
| | — |
|
Common stock | 1,394 |
| | 1,529 |
| | 1,529 |
|
Additional paid-in capital | 429,746 |
| | 407,275 |
| | 401,110 |
|
Treasury stock, at cost | (249,854 | ) | | — |
| | — |
|
Retained earnings | 524,244 |
| | 534,255 |
| | 577,528 |
|
Accumulated other comprehensive income | 646 |
| | 562 |
| | 147 |
|
Total Stockholders’ Equity | 706,176 |
| | 943,621 |
| | 980,314 |
|
| $ | 1,253,214 |
| | $ | 1,438,581 |
| | $ | 1,477,948 |
|
Chico’s FAS, Inc. and Subsidiaries
Condensed Consolidated Cash Flow Statements
(Unaudited)
(in thousands)
|
| | | | | | | |
| Thirty-Nine Weeks Ended |
| October 31, 2015 | | November 1, 2014 |
Cash Flows From Operating Activities: | | | |
Net income | $ | 23,037 |
| | $ | 96,471 |
|
Adjustments to reconcile net income to net cash provided by operating activities — | | | |
Goodwill and intangible impairment charges, pre-tax | 112,455 |
| | — |
|
Depreciation and amortization | 90,266 |
| | 90,514 |
|
Loss on disposal and impairment of property and equipment | 22,609 |
| | 757 |
|
Deferred tax benefit | (52,623 | ) | | (9,204 | ) |
Stock-based compensation expense | 20,712 |
| | 20,041 |
|
Excess tax benefit from stock-based compensation | (2,992 | ) | | (1,654 | ) |
Deferred rent and lease credits | (15,018 | ) | | (13,754 | ) |
Changes in assets and liabilities: | | | |
Inventories | (44,811 | ) | | (56,089 | ) |
Prepaid expenses and other assets | (27,653 | ) | | (5,032 | ) |
Accounts payable | 7,377 |
| | 31,387 |
|
Accrued and other liabilities | (3,300 | ) | | 27,655 |
|
Net cash provided by operating activities | 130,059 |
| | 181,092 |
|
Cash Flows From Investing Activities: | | | |
Purchases of marketable securities | (43,479 | ) | | (81,134 | ) |
Proceeds from sale of marketable securities | 122,712 |
| | 73,062 |
|
Purchases of property and equipment, net | (66,595 | ) | | (98,084 | ) |
Net cash provided by (used in) investing activities | 12,638 |
| | (106,156 | ) |
Cash Flows From Financing Activities: | | | |
Proceeds from borrowings | 124,000 |
| | — |
|
Payments on borrowings | (29,000 | ) | | — |
|
Proceeds from issuance of common stock | 10,614 |
| | 5,930 |
|
Excess tax benefit from stock-based compensation | 2,992 |
| | 1,654 |
|
Dividends paid | (32,933 | ) | | (34,329 | ) |
Repurchase of common stock | (260,555 | ) | | (17,579 | ) |
Net cash used in financing activities | (184,882 | ) | | (44,324 | ) |
Effects of exchange rate changes on cash and cash equivalents | 90 |
| | 116 |
|
Net (decrease) increase in cash and cash equivalents | (42,095 | ) | | 30,728 |
|
Cash and Cash Equivalents, Beginning of period | 133,351 |
| | 36,444 |
|
Cash and Cash Equivalents, End of period | $ | 91,256 |
| | $ | 67,172 |
|
Changes in assets and liabilities reflect Boston Proper DTC assets and liabilities prior to reclassification to held for sale.
Supplemental Detail on Earnings Per Share Calculation
In accordance with accounting guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities. As a result, such awards are required to be included in the calculation of earnings per common share pursuant to the “two-class” method. For the Company, participating securities are composed entirely of unvested restricted stock awards and performance-based restricted stock units (“PSUs”) that have met their relevant performance criteria.
Earnings per share is determined using the two-class method, as it is more dilutive than the treasury stock method. Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of potential common shares from non-participating securities such as stock options and PSUs. For the thirty-nine and thirteen weeks ended October 31, 2015 and November 1, 2014, potential common shares were excluded from the computation of diluted EPS to the extent they were antidilutive.
The following unaudited table sets forth the computation of basic and diluted earnings per share shown on the face of the accompanying condensed consolidated statements of operations (in thousands, except per share amounts):
|
| | | | | | | | | | | | | | | |
| Thirty-Nine Weeks Ended | | Thirteen Weeks Ended |
| October 31, 2015 | | November 1, 2014 | | October 31, 2015 | | November 1, 2014 |
| | | | | | | |
Numerator | | | | | | | |
Net income (loss) | $ | 23,037 |
| | $ | 96,471 |
| | $ | (11,610 | ) | | $ | 26,463 |
|
Net income and dividends declared allocated to participating securities | (492 | ) | | (2,648 | ) | | — |
| | (745 | ) |
Net income (loss) available to common shareholders | $ | 22,545 |
| | $ | 93,823 |
| | $ | (11,610 | ) | | $ | 25,718 |
|
| | | | | | | |
Denominator | | | | | | | |
Weighted average common shares outstanding – basic | 139,386 |
| | 148,577 |
| | 136,172 |
| | 148,564 |
|
Dilutive effect of non-participating securities | 338 |
| | 516 |
| | — |
| | 473 |
|
Weighted average common and common equivalent shares outstanding – diluted | 139,724 |
| | 149,093 |
| | 136,172 |
| | 149,037 |
|
| | | | | | | |
Net income per common share*: | | | | | | | |
Basic | $ | 0.16 |
| | $ | 0.63 |
| | $ | (0.09 | ) | | $ | 0.17 |
|
Diluted | $ | 0.16 |
| | $ | 0.63 |
| | $ | (0.09 | ) | | $ | 0.17 |
|
*Due to the differences between quarterly and year-to-date weighted average share counts and the effect of quarterly rounding to the nearest cent per diluted share, the year-to-date calculation of GAAP and non-GAAP diluted EPS may not equal the sum of the quarters.
SEC Regulation G - The Company reports its consolidated financial results in accordance with generally accepted accounting principles (GAAP). However, to supplement these consolidated financial results, management believes that certain non-GAAP results, which exclude certain charges and results from non-continuing operations, may provide a more meaningful measure on which to compare the Company’s results of operations between periods. The Company believes these non-GAAP results provide useful information to both management and investors by excluding certain expenses that impact the comparability of the results.
A reconciliation of net income and earnings per diluted share on a GAAP basis to net income and earnings per diluted share on a non-GAAP adjusted basis is presented in the table below:
|
| | | | | | | | | | | | | | | | |
Chico’s FAS, Inc. and Subsidiaries |
GAAP to Non-GAAP Reconciliation of Net Income (Loss) and Diluted EPS |
(Unaudited) |
(in thousands, except per share amounts) |
| | | | | | | | |
| | Thirty-Nine Weeks Ended | | Thirteen Weeks Ended |
| | October 31, 2015 | | November 1, 2014 | | October 31, 2015 | | November 1, 2014 |
Net income (loss): | | | | | | | | |
GAAP basis | | $ | 23,037 |
| | $ | 96,471 |
| | $ | (11,610 | ) | | $ | 26,463 |
|
Goodwill and intangible impairment charges, net of tax | | 70,985 |
| | — |
| | 23,859 |
| | — |
|
Restructuring and strategic charges, net of tax | | 21,225 |
| | — |
| | 1,948 |
| | — |
|
Tax benefit related to the expected disposition of Boston Proper's stock | | (23,779 | ) | | — |
| | — |
| | — |
|
Boston Proper operating loss, net of tax | | 8,239 |
| | 4,756 |
| | 3,502 |
| | 2,450 |
|
Non-GAAP adjusted basis | | $ | 99,707 |
| | $ | 101,227 |
| | $ | 17,699 |
| | $ | 28,913 |
|
| | | | | | | | |
Net income (loss) per diluted share: | | | | | | | | |
GAAP basis | | $ | 0.16 |
| | $ | 0.63 |
| | $ | (0.09 | ) | | $ | 0.17 |
|
Goodwill and intangible impairment charges, net of tax | | 0.50 |
| | 0.00 |
| | 0.18 |
| | 0.00 |
|
Restructuring and strategic charges, net of tax | | 0.15 |
| | 0.00 |
| | 0.01 |
| | 0.00 |
|
Tax benefit related to the expected disposition of Boston Proper's stock | | (0.17 | ) | | 0.00 |
| | 0.00 |
| | 0.00 |
|
Boston Proper operating loss, net of tax | | 0.06 |
| | 0.03 |
| | 0.03 |
| | 0.02 |
|
Non-GAAP adjusted basis | | $ | 0.70 |
| | $ | 0.66 |
| | $ | 0.13 |
| | $ | 0.19 |
|
SEC Regulation G - The Company reports its consolidated financial results in accordance with generally accepted accounting principles (GAAP). However, to supplement these consolidated financial results, management believes that certain non-GAAP results, which exclude results from non-continuing operations, may provide a more meaningful measure on which to compare the Company’s results of operations between periods.
The tables below present a reconciliation of selected consolidated financial data on a GAAP basis to selected consolidated financial data on a non-GAAP adjusted basis, when excluding Boston Proper:
|
| | | | | | | | | | | | | | | | | | | | | | | |
Chico’s FAS, Inc. and Subsidiaries |
Reconciliation of Reported to Adjusted Consolidated Financial Data,
Excluding Boston Proper |
(Unaudited) |
(in thousands) |
| |
Selected Consolidated Financial Data,
As Reported |
| Thirty-Nine Weeks Ended | | Thirteen Weeks Ended |
| October 31, 2015 | | November 1, 2014 | | October 31, 2015 | | November 1, 2014 |
| Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales |
Net sales | 2,014,910 |
| | 100.0 | % | | 2,018,304 |
| | 100.0 | % | | 641,219 |
| | 100.0 | % | | 665,569 |
| | 100.0 | % |
Gross margin | 1,112,220 |
| | 55.2 | % | | 1,098,156 |
| | 54.4 | % | | 350,482 |
| | 54.7 | % | | 363,793 |
| | 54.7 | % |
Selling, general and administrative expenses | 964,229 |
| | 47.9 | % | | 945,360 |
| | 46.8 | % | | 327,575 |
| | 51.1 | % | | 321,574 |
| | 48.3 | % |
Subtotal | 147,991 |
| | 7.3 | % | | 152,796 |
| | 7.6 | % | | 22,907 |
| | 3.6 | % | | 42,219 |
| | 6.4 | % |
| | | | | | | | | | | | | | | |
Boston Proper |
| Thirty-Nine Weeks Ended | | Thirteen Weeks Ended |
| October 31, 2015 | | November 1, 2014 | | October 31, 2015 | | November 1, 2014 |
| Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales |
Net sales | 65,303 |
| | 100.0 | % | | 72,426 |
| | 100.0 | % | | 17,312 |
| | 100.0 | % | | 22,787 |
| | 100.0 | % |
Gross margin | 27,227 |
| | 41.7 | % | | 32,949 |
| | 45.5 | % | | 5,826 |
| | 33.7 | % | | 9,380 |
| | 41.2 | % |
Selling, general and administrative expenses | 40,495 |
| | 62.0 | % | | 40,609 |
| | 56.1 | % | | 11,466 |
| | 66.2 | % | | 13,325 |
| | 58.5 | % |
Subtotal | (13,268 | ) | | (20.3 | )% | | (7,660 | ) | | (10.6 | )% | | (5,640 | ) | | (32.6 | )% | | (3,945 | ) | | (17.3 | )% |
| | | | | | | | | | | | | | | |
Selected Consolidated Financial Data,
Adjusted |
| Thirty-Nine Weeks Ended | | Thirteen Weeks Ended |
| October 31, 2015 | | November 1, 2014 | | October 31, 2015 | | November 1, 2014 |
| Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales | | Amount | | % of
Sales |
Net sales | 1,949,607 |
| | 100.0 | % | | 1,945,878 |
| | 100.0 | % | | 623,907 |
| | 100.0 | % | | 642,782 |
| | 100.0 | % |
Gross margin | 1,084,993 |
| | 55.7 | % | | 1,065,207 |
| | 54.7 | % | | 344,656 |
| | 55.3 | % | | 354,413 |
| | 55.1 | % |
Selling, general and administrative expenses | 923,734 |
| | 47.4 | % | | 904,751 |
| | 46.5 | % | | 316,109 |
| | 50.7 | % | | 308,249 |
| | 47.9 | % |
Subtotal | 161,259 |
| | 8.3 | % | | 160,456 |
| | 8.2 | % | | 28,547 |
| | 4.6 | % | | 46,164 |
| | 7.2 | % |
|
| | | | | | | | | | | | | | |
Chico's FAS, Inc. and Subsidiaries |
Store Count and Square Footage |
Thirteen Weeks Ended October 31, 2015 |
(Unaudited) |
| | | | | | | | | |
| August 1, 2015 | | New Stores | | Closures | | October 31, 2015 | | |
Store count: | | | | | | | | | |
Chico’s frontline boutiques | 609 |
| | 2 |
| | (4 | ) | | 607 |
| | |
Chico’s outlets | 119 |
| | 2 |
| | (2 | ) | | 119 |
| | |
Chico's Canada | 4 |
| | — |
| | — |
| | 4 |
| | |
WH|BM frontline boutiques | 435 |
| | 2 |
| | (4 | ) | | 433 |
| | |
WH|BM outlets | 71 |
| | — |
| | (2 | ) | | 69 |
| | |
WH|BM Canada | 6 |
| | — |
| | — |
| | 6 |
| | |
Soma frontline boutiques | 267 |
| | 6 |
| | (2 | ) | | 271 |
| | |
Soma outlets | 17 |
| | — |
| | — |
| | 17 |
| | |
Boston Proper frontline boutiques | 20 |
| | — |
| | — |
| | 20 |
| | |
Total Chico’s FAS, Inc. | 1,548 |
| | 12 |
| | (14 | ) | | 1,546 |
| | |
| | | | | | | | | |
| August 1, 2015 | | New Stores | | Closures | | Other changes in SSF | | October 31, 2015 |
Net selling square footage (SSF): | | | | | | | | | |
Chico’s frontline boutiques | 1,662,709 |
| | 5,495 |
| | (11,792 | ) | | 623 |
| | 1,657,035 |
|
Chico’s outlets | 297,753 |
| | 4,571 |
| | (4,495 | ) | | 74 |
| | 297,903 |
|
Chico's Canada | 9,695 |
| | — |
| | — |
| | — |
| | 9,695 |
|
WH|BM frontline boutiques | 999,010 |
| | 5,078 |
| | (7,565 | ) | | 760 |
| | 997,283 |
|
WH|BM outlets | 148,702 |
| | — |
| | (3,212 | ) | | (1,512 | ) | | 143,978 |
|
WH|BM Canada | 14,891 |
| | — |
| | — |
| | — |
| | 14,891 |
|
Soma frontline boutiques | 503,744 |
| | 11,017 |
| | (3,410 | ) | | 191 |
| | 511,542 |
|
Soma outlets | 31,672 |
| | — |
| | — |
| | — |
| | 31,672 |
|
Boston Proper frontline boutiques | 34,465 |
| | — |
| | — |
| | — |
| | 34,465 |
|
Total Chico’s FAS, Inc. | 3,702,641 |
| | 26,161 |
| | (30,474 | ) | | 136 |
| | 3,698,464 |
|
As of October 31, 2015 the Company also sold merchandise through 37 international franchise locations.
|
| | | | | | | | | | | | | | |
Chico's FAS, Inc. and Subsidiaries |
Store Count and Square Footage |
Thirty-Nine Weeks Ended October 31, 2015 |
(Unaudited) |
| | | | | | | | | |
| January 31, 2015 | | New Stores | | Closures | | October 31, 2015 | | |
Store count: | | | | | | | | | |
Chico’s frontline boutiques | 613 |
| | 7 |
| | (13 | ) | | 607 |
| | |
Chico’s outlets | 118 |
| | 4 |
| | (3 | ) | | 119 |
| | |
Chico's Canada | 3 |
| | 1 |
| | — |
| | 4 |
| | |
WH|BM frontline boutiques | 441 |
| | 4 |
| | (12 | ) | | 433 |
| | |
WH|BM outlets | 68 |
| | 3 |
| | (2 | ) | | 69 |
| | |
WH|BM Canada | 5 |
| | 1 |
| | — |
| | 6 |
| | |
Soma frontline boutiques | 263 |
| | 12 |
| | (4 | ) | | 271 |
| | |
Soma outlets | 17 |
| | — |
| | — |
| | 17 |
| | |
Boston Proper frontline boutiques | 19 |
| | 1 |
| | — |
| | 20 |
| | |
Total Chico’s FAS, Inc. | 1,547 |
| | 33 |
| | (34 | ) | | 1,546 |
| | |
| | | | | | | | | |
| January 31, 2015 | | New Stores | | Closures | | Other changes in SSF | | October 31, 2015 |
Net selling square footage (SSF): | | | | | | | | | |
Chico’s frontline boutiques | 1,674,640 |
| | 18,166 |
| | (35,089 | ) | | (682 | ) | | 1,657,035 |
|
Chico’s outlets | 295,600 |
| | 8,952 |
| | (6,901 | ) | | 252 |
| | 297,903 |
|
Chico's Canada | 7,313 |
| | 2,382 |
| | — |
| | — |
| | 9,695 |
|
WH|BM frontline boutiques | 1,010,242 |
| | 9,915 |
| | (24,721 | ) | | 1,847 |
| | 997,283 |
|
WH|BM outlets | 141,900 |
| | 6,802 |
| | (3,212 | ) | | (1,512 | ) | | 143,978 |
|
WH|BM Canada | 12,460 |
| | 2,431 |
| | — |
| | — |
| | 14,891 |
|
Soma frontline boutiques | 498,642 |
| | 22,356 |
| | (8,390 | ) | | (1,066 | ) | | 511,542 |
|
Soma outlets | 31,672 |
| | — |
| | — |
| | — |
| | 31,672 |
|
Boston Proper frontline boutiques | 33,035 |
| | 1,430 |
| | — |
| | — |
| | 34,465 |
|
Total Chico’s FAS, Inc. | 3,705,504 |
| | 72,434 |
| | (78,313 | ) | | (1,161 | ) | | 3,698,464 |
|
As of October 31, 2015 the Company also sold merchandise through 37 international franchise locations.
The Company reports its consolidated financial results in accordance with generally accepted accounting principles (GAAP). However, to supplement these consolidated financial results, management believes that certain non-GAAP results, which exclude results from non-continuing operations, may provide a more meaningful measure on which to compare the Company’s results of operations between periods. The tables below present a reconciliation of selected consolidated financial data on a GAAP basis to selected consolidated financial data on a non-GAAP adjusted basis, when excluding Boston Proper:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Chico's FAS, Inc. and Subsidiaries |
Reconciliation of Reported to Adjusted Consolidated Financial Data, Excluding Boston Proper |
(Unaudited) |
(in thousands) |
| | | | | | | | | | | | | | | | | | |
Selected Consolidated Financial Data, |
As Reported |
| | | | | | | | | | | | | | | | | | |
| | Thirteen Weeks Ended | | | | Thirty-Nine Weeks Ended |
| | May 2, 2015 | | August 1, 2015 | | October 31, 2015 | | | | October 31, 2015 |
| | Amount | | % of Sales | | Amount | | % of Sales | | Amount | | % of Sales | | | | Amount | | % of Sales |
Net sales | 693,339 |
| | 100.0% |
| | 680,352 |
| | 100.0% | | 641,219 |
| | 100.0% |
| | | | 2,014,910 |
| | 100.0% |
Gross margin | 395,770 |
| | 57.1% |
| | 365,968 |
| | 53.8% | | 350,482 |
| | 54.7% |
| | | | 1,112,220 |
| | 55.2% |
Selling, general and administrative expenses | 328,217 |
| | 47.4 | % | | 308,437 |
| | 45.3% | | 327,575 |
| | 51.1% |
| | | | 964,229 |
| | 47.9% |
Subtotal | 67,553 |
| | 9.7 | % | | 57,531 |
| | 8.5% | | 22,907 |
| | 3.6% |
| | | | 147,991 |
| | 7.3% |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Boston Proper |
| | | | | | | | | | | | | | | | | | |
| | Thirteen Weeks Ended | | | | Thirty-Nine Weeks Ended |
| | May 2, 2015 | | August 1, 2015 | | October 31, 2015 | | | | October 31, 2015 |
| | Amount | | % of Sales | | Amount | | % of Sales | | Amount | | % of Sales | | | | Amount | | % of Sales |
Net sales | 23,782 |
| | 100.0% |
| | 24,209 |
| | 100.0% | | 17,312 |
| | 100.0% |
| | | | 65,303 |
| | 100.0% |
Gross margin | 10,478 |
| | 44.1% |
| | 10,923 |
| | 45.1% | | 5,826 |
| | 33.7% |
| | | | 27,227 |
| | 41.7% |
Selling, general and administrative expenses | 14,866 |
| | 62.5% |
| | 14,163 |
| | 58.5% | | 11,466 |
| | 66.2% |
| | | | 40,495 |
| | 62.0% |
Subtotal | (4,388 | ) | | -18.4% |
| | (3,240 | ) | | -13.4% | | (5,640 | ) | | -32.6% |
| | | | (13,268 | ) | | -20.3% |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Selected Consolidated Financial Data, |
Adjusted |
| | | | | | | | | | | | | | | | | | |
| | Thirteen Weeks Ended | | | | Thirty-Nine Weeks Ended |
| | May 2, 2015 | | August 1, 2015 | | October 31, 2015 | | | | October 31, 2015 |
| | Amount | | % of Sales | | Amount | | % of Sales | | Amount | | % of Sales | | | | Amount | | % of Sales |
Net sales | 669,557 |
| | 100.0% |
| | 656,143 |
| | 100.0% | | 623,907 |
| | 100.0% |
| | | | 1,949,607 |
| | 100.0% |
Gross margin | 385,292 |
| | 57.5% |
| | 355,045 |
| | 54.1% | | 344,656 |
| | 55.3 | % | | | | 1,084,993 |
| | 55.7% |
Selling, general and administrative expenses | 313,351 |
| | 46.8% |
| | 294,274 |
| | 44.8% | | 316,109 |
| | 50.7% |
| | | | 923,734 |
| | 47.4% |
Subtotal | 71,941 |
| | 10.7% |
| | 60,771 |
| | 9.3% | | 28,547 |
| | 4.5% |
| | | | 161,259 |
| | 8.3% |
Chicos FAS (NYSE:CHS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Chicos FAS (NYSE:CHS)
Historical Stock Chart
From Apr 2023 to Apr 2024
