FORT MYERS, Fla., April 25, 2016 /PRNewswire/ -- Chico's FAS, Inc.
(NYSE:CHS) today announced a realignment of its Marketing and
Digital Commerce functions, placing the decision makers directly
into the Company's three brands, Chico's, White House Black Market
and Soma. The technology and analytics infrastructure and
associated back office support will continue to service the brands
at the corporate level to leverage scale. The realignment
will further optimize marketing programs and decrease related
expenses. In total, the Company expects to reduce fiscal 2016
marketing expenses by $11 million and
generate annualized cost savings of approximately $14 million.
Shelley Broader, President and
Chief Executive Officer of Chico's FAS, Inc., commented,
"Disbanding these previously centralized functions will result in a
leaner, more simplified structure that better supports the
individual brand needs and places the functions closer to the
customers, while at the same time, reducing costs and complexity
within the Company. By directly aligning these resources
within the brands, we will enable better execution on our customer
experience initiative, one of our four areas of focus that we
outlined in February to drive results, enhance profitability and
increase shareholder value."
As previously announced, to meet the needs of customers and
drive better and more consistent performance, the Company
introduced four areas of focus: evolving the customer experience,
strengthening the position of each brand, leveraging actionable
retail science and sharpening financial principles.
In connection with the changes announced today, Miki Berardelli, President - Digital Commerce
and Chief Marketing Officer, will be leaving the Company. Her
primary Marketing and Digital Commerce responsibilities will be
assumed by the Brand Presidents. Ms. Broader said, "On behalf
of the Chico's FAS organization, we thank Miki for her vision and
dedication. We wish her all the best as she moves ahead
towards her next endeavor."
Separately, effective in the first quarter of fiscal 2016, the
Company intends to present store occupancy expenses and shipping
expenses in Cost of Goods Sold to align with its peers and better
reflect how the business operates, as the Company believes that the
costs represent direct costs associated with the sale of its
merchandise. Store occupancy expenses and shipping expenses,
which were historically recorded in Selling, General and
Administrative Expenses, will now be recorded in Cost of Goods
Sold. Also, shipping revenue, which was historically recorded
in Selling, General, and Administrative Expenses, will now be
recorded in Revenue. These adjustments will be made
retrospectively for all periods presented and have no effect on the
Company's reported net income. For ease of comparison, the Company
will provide historical comparative financial information in a Form
8-K that will be filed today.
ABOUT CHICO'S FAS, INC.
The Company, through its
brands - Chico's, White House Black Market, and Soma, 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 January 30, 2016, the
Company operated 1,518 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, and www.soma.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 may
contain certain "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which
reflect our current views with respect to certain events that could
have an effect on our future financial performance, including but
without limitation, statements regarding our plans, objectives, and
future success of our store concepts. These statements may address
items such as future sales, gross margin expectations, SG&A
expectations, operating margin expectations, planned store
openings, closings and expansions, future comparable sales, and
inventory levels. These relate to expectations concerning matters
that are not historical fact and may include the words or phrases
such as "expects," "believes," "anticipates," "plans,"
"estimates," "approximately," "our planning assumptions," "future
outlook," and similar expressions. Such forward-looking statements
involve known or unknown risks, including, but not limited to,
general economic and business conditions, conditions in the
specialty retail industry, the availability of quality store sites,
the ability to successfully execute our business strategies, the
ability to achieve the results of our restructuring program, and
the integration of our new management team. 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.
Contact:
Jennifer
Powers
Vice President - Investor Relations
Chico's FAS, Inc.
(239) 346-4199
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SOURCE Chico's FAS, Inc.