Exhibit 99.2
The Company has historically presented store occupancy expenses, shipping expenses and shipping revenue within selling, general and administrative expenses ("SG&A"). Beginning in the first quarter 2016, the Company will present store occupancy expenses and shipping expenses within cost of goods sold and will present shipping revenue within net sales. A detailed disclosure of the changes will be included in our first quarter 2016 Form 10-Q. The tables below present the presentation changes to selected consolidated financial data.
Chico's FAS, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
Fiscal 2015 Reconciliation of Reported to Adjusted Selected Consolidated Financial Data | |||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
As Reported | |||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||||||||
May 2, 2015 | August 1, 2015 | October 31, 2015 | January 30, 2016 | January 30, 2016 | |||||||||||||||||||||||||||||||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | ||||||||||||||||||||||||||
Net Sales | $ | 693,339 | 100.0 | % | $ | 680,351 | 100.0 | % | $ | 641,219 | 100.0 | % | $ | 627,400 | 100.0 | % | $ | 2,642,309 | 100.0 | % | |||||||||||||||
Cost of goods sold | 297,569 | 42.9 | 314,383 | 46.2 | 290,737 | 45.3 | 308,863 | 49.2 | 1,211,552 | 45.9 | |||||||||||||||||||||||||
Gross margin | 395,770 | 57.1 | 365,968 | 53.8 | 350,482 | 54.7 | 318,537 | 50.8 | 1,430,757 | 54.1 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 328,217 | 47.4 | 308,437 | 45.3 | 327,575 | 51.1 | 318,356 | 50.7 | 1,282,585 | 48.5 | |||||||||||||||||||||||||
Subtotal | 67,553 | 9.7 | 57,531 | 8.5 | 22,907 | 3.6 | 181 | 0.1 | 148,172 | 5.6 |
Adjustments | |||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||||||||
May 2, 2015 | August 1, 2015 | October 31, 2015 | January 30, 2016 | January 30, 2016 | |||||||||||||||||||||||||||||||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | ||||||||||||||||||||||||||
Net Sales(1) | $ | 4,427 | — | % | $ | 5,475 | — | % | $ | 4,214 | — | % | $ | 4,210 | — | % | $ | 18,326 | — | % | |||||||||||||||
Store occupancy expense(2) | 95,238 | 13.4 | 97,258 | 13.8 | 96,773 | 14.8 | 95,626 | 14.9 | 384,895 | 14.1 | |||||||||||||||||||||||||
Shipping expense(3) | 9,341 | 1.3 | 9,484 | 1.4 | 8,760 | 1.3 | 9,732 | 1.5 | 37,317 | 1.4 | |||||||||||||||||||||||||
Cost of goods sold | 104,579 | 14.7 | 106,742 | 15.2 | 105,533 | 16.1 | 105,358 | 16.4 | 422,212 | 15.5 | |||||||||||||||||||||||||
Gross margin | (100,152 | ) | (14.7 | ) | (101,267 | ) | (15.2 | ) | (101,319 | ) | (16.1 | ) | (101,148 | ) | (16.4 | ) | (403,886 | ) | (15.5 | ) | |||||||||||||||
Selling, general and administrative expenses | (100,152 | ) | (14.6 | ) | (101,267 | ) | (15.1 | ) | (101,319 | ) | (16.0 | ) | (101,148 | ) | (16.3 | ) | (403,886 | ) | (15.5 | ) | |||||||||||||||
Subtotal | — | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | — | — |
As Adjusted | |||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||||||||
May 2, 2015 | August 1, 2015 | October 31, 2015 | January 30, 2016 | January 30, 2016 | |||||||||||||||||||||||||||||||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | ||||||||||||||||||||||||||
Net Sales | $ | 697,766 | 100.0 | % | $ | 685,826 | 100.0 | % | $ | 645,433 | 100.0 | % | $ | 631,610 | 100.0 | % | $ | 2,660,635 | 100.0 | % | |||||||||||||||
Cost of goods sold | 402,148 | 57.6 | 421,125 | 61.4 | 396,270 | 61.4 | 414,221 | 65.6 | 1,633,764 | 61.4 | |||||||||||||||||||||||||
Gross margin | 295,618 | 42.4 | 264,701 | 38.6 | 249,163 | 38.6 | 217,389 | 34.4 | 1,026,871 | 38.6 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 228,065 | 32.7 | 207,170 | 30.2 | 226,256 | 35.1 | 217,208 | 34.4 | 878,699 | 33.0 | |||||||||||||||||||||||||
Subtotal | 67,553 | 9.7 | 57,531 | 8.4 | 22,907 | 3.5 | 181 | — | 148,172 | 5.6 |
(1) Adjustments to net sales represent the correction of an immaterial error in the classification of shipping revenue, which was previously classified within SG&A.
(2) Adjustments to store occupancy expense represent the reclassification of store occupancy expenses, which were previously classified within SG&A.
(3) Adjustments to shipping expense represent a change in accounting policy to present shipping expenses within cost of goods sold, which were previously presented within SG&A.
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Chico's FAS, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
Fiscal 2014 Reconciliation of Reported to Adjusted Selected Consolidated Financial Data | |||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
As Reported | |||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||||||||
May 3, 2014 | August 2, 2014 | November 1, 2014 | January 31, 2015 | January 31, 2015 | |||||||||||||||||||||||||||||||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | ||||||||||||||||||||||||||
Net Sales | $ | 681,605 | 100.0 | % | $ | 671,130 | 100.0 | % | $ | 665,569 | 100.0 | % | $ | 656,907 | 100.0 | % | $ | 2,675,211 | 100.0 | % | |||||||||||||||
Cost of goods sold | 298,714 | 43.8 | 319,658 | 47.6 | 301,776 | 45.3 | 328,741 | 50.0 | 1,248,889 | 46.7 | |||||||||||||||||||||||||
Gross margin | 382,891 | 56.2 | 351,472 | 52.4 | 363,793 | 54.7 | 328,166 | 50.0 | 1,426,322 | 53.3 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 319,049 | 46.8 | 304,737 | 45.4 | 321,574 | 48.3 | 317,774 | 48.4 | 1,263,134 | 47.2 | |||||||||||||||||||||||||
Subtotal | 63,842 | 9.4 | 46,735 | 7.0 | 42,219 | 6.4 | 10,392 | 1.6 | 163,188 | 6.1 |
Presentation Adjustments | |||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||||||||
May 3, 2014 | August 2, 2014 | November 1, 2014 | January 31, 2015 | January 31, 2015 | |||||||||||||||||||||||||||||||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | ||||||||||||||||||||||||||
Net Sales(1) | $ | 4,026 | — | % | $ | 5,465 | — | % | $ | 4,515 | — | % | $ | 4,712 | — | % | $ | 18,718 | — | % | |||||||||||||||
Store occupancy expense(2) | 90,860 | 13.0 | 93,682 | 13.5 | 94,734 | 13.9 | 93,711 | 13.9 | 372,987 | 13.5 | |||||||||||||||||||||||||
Shipping expense(3) | 8,844 | 1.3 | 9,441 | 1.4 | 9,280 | 1.4 | 10,250 | 1.5 | 37,815 | 1.4 | |||||||||||||||||||||||||
Cost of goods sold | 99,704 | 14.3 | 103,123 | 14.9 | 104,014 | 15.3 | 103,961 | 15.4 | 410,802 | 14.9 | |||||||||||||||||||||||||
Gross margin | (95,678 | ) | (14.3 | ) | (97,658 | ) | (14.9 | ) | (99,499 | ) | (15.3 | ) | (99,249 | ) | (15.4 | ) | (392,084 | ) | (14.9 | ) | |||||||||||||||
Selling, general and administrative expenses | (95,678 | ) | (14.2 | ) | (97,658 | ) | (14.8 | ) | (99,499 | ) | (15.2 | ) | (99,249 | ) | (15.4 | ) | (392,084 | ) | (14.9 | ) | |||||||||||||||
Subtotal | — | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | — | — | — | — |
As Adjusted | |||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||||||||
May 3, 2014 | August 2, 2014 | November 1, 2014 | January 31, 2015 | January 31, 2015 | |||||||||||||||||||||||||||||||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | ||||||||||||||||||||||||||
Net Sales | $ | 685,631 | 100.0 | % | $ | 676,595 | 100.0 | % | $ | 670,084 | 100.0 | % | $ | 661,619 | 100.0 | % | $ | 2,693,929 | 100.0 | % | |||||||||||||||
Cost of goods sold | 398,418 | 58.1 | 422,781 | 62.5 | 405,790 | 60.6 | 432,702 | 65.4 | 1,659,691 | 61.6 | |||||||||||||||||||||||||
Gross margin | 287,213 | 41.9 | 253,814 | 37.5 | 264,294 | 39.4 | 228,917 | 34.6 | 1,034,238 | 38.4 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 223,371 | 32.6 | 207,079 | 30.6 | 222,075 | 33.1 | 218,525 | 33.0 | 871,050 | 32.3 | |||||||||||||||||||||||||
Subtotal | 63,842 | 9.3 | 46,735 | 6.9 | 42,219 | 6.3 | 10,392 | 1.6 | 163,188 | 6.1 |
(1) Adjustments to net sales represent the correction of an immaterial error in the classification of shipping revenue which was previously classified within SG&A.
(2) Adjustments to store occupancy expense represent the reclassification of store occupancy expenses which were previously classified within SG&A.
(3) Adjustments to shipping expense represent a change in accounting policy to present shipping expenses within cost of goods sold, which were previously presented within SG&A.
2