FORT MYERS, Fla., April 29, 2020 /PRNewswire/ -- Chico's FAS
(NYSE: CHS) today announced the promotion of Molly Langenstein to CEO and President of
Chico's FAS, effective June 24, 2020.
Ms. Langenstein is a 30-year retail fashion veteran with a proven
track record of success in revitalizing sales and profitability.
Since August 2019, Ms. Langenstein
has served as President of the Company's two largest brands,
Chico's and White House Black Market. The Company recently posted
one of the fastest turnarounds in fashion retail with three
consecutive quarters of unprecedented growth with a 9.4% increase
in sales from Q1 to Q4 of fiscal year 2019 prior to the COVID-19
pandemic.
The Company also announced that current CEO and President
Bonnie Brooks, who stepped into her
role in April 2019 to lead the
Company's turnaround, will now become Executive Chair of the Board
of Directors and continue to oversee the Company's strategic
direction. William (Bill) Simon, a
member of the Board and former President and CEO of Walmart U.S.
and senior advisor to KKR private equity firm, will assume the role
of Lead Independent Director. David
Walker, who has served as Chair of the Board for the past
five years, will remain a member of the Board of Directors. Ms.
Langenstein also will become a member of the Board of Directors.
All appointments are effective June 24,
2020.
These three new simultaneous leadership appointments are the
result of a planned succession designed to strengthen and provide
ongoing stability and continuity to the business, and to further
support the Company's future.
"Molly joined the Company in August to reposition and rebuild
our two significant apparel brands. She has proven to be an
exceptional leader who quickly seized the immediate opportunities
of improving product assortments, driving sales, and recruiting
senior talent, particularly in merchandising, digital and
marketing," said Ms. Brooks.
Ms. Brooks added: "Throughout the fall period, the Company
demonstrated its capacity to dramatically change its performance
trajectory, which continued strongly into the pre-COVID-19 spring
season. Molly has shown superb leadership during both this high
growth phase and particularly in the current environment, as we
pivot to a post-COVID-19 operating model. The new culture of
agility, and the ability to grow sales while reducing expenses, has
already served us well during this period, and I am confident we
have a path forward for a sustainable future with Molly at the helm
of the Company."
As President of Chico's and White House Black Market for the
past nine months, Ms. Langenstein led the apparel group, including
its brick-and-mortar boutiques and digital platforms, while
increasing sales, product quality and elevating taste and
style.
"I'm honored to lead this company of customer and product
obsessed people and three unique brands, each thriving in their own
market white space to provide solutions that women say give them
confidence and joy," said Ms. Langenstein. "Starting next week, all
three brands will begin to open stores in a phased rollout to
immediately deliver sales."
Ms. Langenstein added: "We have operated primarily as a digital
company. We equipped our store management with Style Connect, our
proprietary digital styling tool, to communicate directly with many
of our customers to drive sales to digital fulfillment. Both our
digital performance and our customers comments demonstrate that our
investments in innovative technology have benefited our business,
which we will continue to enhance in our post-COVID-19 operating
model."
In addition to these appointments, the Company today announced a
significant restructure of the overall organization, primarily to
achieve a leaner, streamlined structure more efficiently aligned to
the needs of the business, and to achieve meaningful cost
reductions of approximately 30 percent across the Company.
As previously announced on April
27, Chico's FAS has a strong financial position consisting
of cash, investments and undrawn funds available in its asset-based
credit facility along with wholly-owned significant real estate
assets of multiple distribution centers and office buildings. In
addition, the Company has taken prudent actions to reserve cash and
to significantly reduce overall expenses, to ensure it remains
strong during this period.
Store Reopening Rollout Plan
In addition, starting on
May 4, Chico's FAS will reopen its
boutiques for three additional types of revenue generation: the
fulfillment of national online orders through store inventories;
reintroducing buy-online-pick up in store (BOPIS) with contactless
curbside pickup service; and introducing a new shop-by-appointment
service for each of its Chico's, White House Black Market and Soma
brands.
These new offerings will be available in locations that are
allowing retailers to reopen on a limited basis and will be
consistent with all local health and safety guidelines and
regulations.
Style Connect, the Company's proprietary digital styling tool,
has been a significant enabler of the above reopening activities
and has contributed to the robust digital sales during the
temporary store closure period for the Company.
Earnings Call and Annual General Meeting of Shareholders
Correction
The Company today announced that its conference
call to review first quarter 2020 financial results will be held on
June 10, 2020.
In a previous press release, the Company's 2020 Annual Meeting
of Shareholders was incorrectly communicated as being scheduled on
June 24, 2020. The correct date of
the Company's 2020 Annual Meeting of Shareholders is June 25, 2020 and it will be held as a virtual
meeting.
ABOUT CHICO'S FAS, INC.
Chico's FAS is a Florida-based fashion company founded in 1983
on Sanibel Island, Fla. The Company reinvented the fashion retail
experience by creating fashion communities anchored by our Most
Amazing Personal Service, which put the customer at the center of
everything we do. As one of the leading fashion retailers in
North America, Chico's FAS is a
company of three unique brands – Chico's, White House Black Market
and Soma – each thriving in their own white space, founded by
women, led by women, providing solutions that millions of women say
give them confidence and joy.
Our Company has a passion for fashion, and each day, we provide
clothing, shoes and accessories, intimate apparel and expert
styling in our brick-and-mortar boutiques, digital online boutiques
and through Style Connect, the Company's proprietary digital
styling tool that enables customers to conveniently shop wherever,
whenever and however they prefer.
As of February 1, 2020, the
Company operated 1,341 stores in the U.S. and Canada and sold merchandise through 70
international franchise locations in Mexico and 2 domestic franchise airport
locations. The Company's merchandise also is available at
www.chicos.com, www.chicosofftherack.com, www.whbm.com,
www.soma.com and www.mytelltale.com.
To learn more about Chico's FAS, visit
www.chicosfas.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This press release contains statements
that constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The
statements, including without limitation quotes from Ms. Brooks and
Ms. Langenstein relate to expectations and projections regarding
the Company's future performance and may include the words
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "outlook," "project," "should," "strategy,"
"potential" and similar terms. These forward-looking statements are
based largely on information currently available to our management
and on our current expectations, assumptions, plans, estimates,
judgments and projections about our business and our industry, and
are subject to risks and uncertainties that could cause actual
results to differ materially from historical results or those
currently anticipated. Although we believe our expectations are
based on reasonable estimates and assumptions, there is no
assurance that our expectations will, in fact, occur or that our
estimates or assumptions will be correct, and we caution investors
and all others not to place undue reliance on such forward-looking
statements. Factors that could cause actual results to differ
include, but are not limited to: the effects of the COVID-19
pandemic and uncertainties about its depth and duration, as well as
the impacts to economic conditions and consumer behavior,
including, among others: temporary boutique closures due to
government mandates, the unemployment rate, the extent,
availability and effectiveness of any COVID-19 stimulus packages or
loan programs, and trends in consumer behavior and spending during
and after the end of the pandemic; our ability to successfully
implement any alternatives that we pursue including our ability to
achieve the cost savings described in this release; government
actions and policies; increases in unemployment rates and taxes;
local, regional, national and international economic conditions;
changes in the general economic and business environment; changes
in the general or specialty retail or apparel industries, including
the extent of the market demand and overall level of spending for
women's private branded clothing and related accessories; the
effectiveness of our brand strategies, awareness and marketing
programs; the ability to successfully execute and achieve the
expected results of our business strategies and particular
strategic initiatives (including, but not limited to, the Company's
revised organizational structure, retail fleet optimization plan
and three operating priorities which are driving stronger sales
through improved product and marketing; optimizing the customer
journey by simplifying, digitizing and extending the Company's
unique and personalized service; and transforming sourcing and
supply chain operations to increase product speed to market and
improve quality), sales initiatives and multi-channel strategies;
customer traffic; our ability to appropriately manage our inventory
and allocation processes; our ability to leverage inventory
management and targeted promotions; the successful recruitment of
leadership and the successful integration of new members of our
senior management team; uncertainties regarding future unsolicited
offers to buy the Company and our ability to respond effectively to
them as well as to actions of activist shareholders and others;
changes in the political environment that create consumer
uncertainty; the risk that our investments in merchandise or
marketing initiatives may not deliver the results we anticipate;
significant changes to product import and distribution costs (such
as unexpected consolidation in the freight carrier industry, and
the ability to remain competitive with customer shipping terms and
costs pertaining to product deliveries and returns); new or
increased taxes or tariffs that could impact, among other things,
our sourcing from foreign suppliers; and significant shifts in
consumer behavior. Other risk factors are detailed from time to
time in the Company's Quarterly Reports on Form 10-Q, Annual Report
on Form 10-K and other reports filed with the Securities and
Exchange Commission. These factors should be considered in
evaluating forward‑looking statements contained herein. There can
be no assurance that the actual future results, performance, or
achievements expressed or implied by such forward-looking
statements will occur. 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.
Investor Relations Contact:
Tom Filandro
ICR, Inc.
(646) 277-1235
tom.filandro@icrinc.com
Media Relations Contact:
Pashen Black
Director of Corporate Public Relations
(239) 218-3388
Chico's FAS, Inc. • 11215 Metro Parkway •
Fort Myers, Florida 33966 • (239)
277-6200
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SOURCE Chico's FAS, Inc.