Chico's Fas (CHS) 8-K Chico’s FAS, Inc. Reports a 30% Increase in First Quarter Earnings Per Diluted Share of $0.26 vs. $0.20

Exhibit 99.1

Chico’s FAS, Inc.• 11215 Metro Parkway• Fort Myers, Florida 33966• (239) 277-6200

For Immediate Release

Executive Contact:
Robert C. Atkinson
Vice President-Investor Relations
Chico’s FAS, Inc.
(239) 274-4199

Chico’s FAS, Inc. Reports a 30% Increase in First Quarter
Earnings Per Diluted Share of $0.26 vs. $0.20

• Net sales increased 11.5% to $537.2 million with comparable sales increasing 7.7%

     Fort Myers, FL- May 18, 2011- Chico’s FAS, Inc. (NYSE: CHS) today announced its financial results for the fiscal 2011 first quarter ended April 30, 2011.

Net Income and Earnings per Share

     The Company reported net income of $45.9 million, or $0.26 per diluted share, for the first quarter of fiscal 2011 compared to net income of $35.4 million, or $0.20 per diluted share, reported for the same period last year.

Net Sales

     Net sales for the first quarter increased 11.5% to $537.2 million from $481.6 million in last year’s first quarter. Consolidated comparable sales, which include direct-to-consumer (DTC) sales, increased 7.7% for the first quarter on top of a 16.0% increase for the same period last year. The Chico’s/Soma Intimates brands’ comparable sales increased 7.8% following a 16.1% increase for the same period last year, and the White House | Black Market (“WH|BM”) brand’s comparable sales increased 7.4% following a 15.7% increase for the same period last year.

Gross Margin

     Gross margin for the first quarter, expressed as a percentage of net sales, increased 60 basis points to 59.1% from 58.5% in last year’s first quarter. The gross margin rate increase was attributable to increased margins at Chico’s and WH|BM frontline stores primarily driven by improved in-season sell-through in the current period versus the same period last year.

Selling, General and Administrative Expenses

     Selling, general and administrative expenses (“SG&A”) for the first quarter, expressed as a percentage of net sales, decreased 150 basis points compared to last year’s first quarter. SG&A dollars, however, increased $18.3 million, or 8.1%, over last year’s first quarter primarily due to higher store and direct operating costs associated with 85 net new stores opened since the end of last year’s first quarter.

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     Store and direct operating expenses increased by $12.3 million over last year’s first quarter primarily due to increased occupancy expense and store labor costs associated with 85 net new stores over last year, accompanied by increased credit card fees due to higher sales volume compared to last year. However, expressed as a percentage of net sales, store and direct operating expenses decreased 130 basis points due to the leverage associated with the comparable store sales increase.

     Marketing expenses increased $1.8 million over last year’s first quarter primarily due to incremental television advertising for the Soma brand as well as increased e-marketing initiatives for all three brands.

     National Store Support Center (“NSSC”) expenses, including corporate and other non-brand specific expenses, increased by $3.6 million from last year’s first quarter but were flat to last year as a percentage of net sales.

Inventories

     End of quarter inventory increased $38.1 million or approximately 23.7% from last year’s first quarter. Excluding an incremental $9.6 million of in-transit inventories this year over last year, inventory per selling square foot would have been $66 versus $60, an increase of 9.5% compared to last year. The increase in year-over-year comparable sales including DTC, along with the anticipated opening of 21 net, new stores in the May-June 2011 timeframe, contributed to the increased inventory per selling square foot over last year.

Share Repurchase Program

     During the first quarter of 2011, the Company repurchased 2.6 million shares for $36.3 million and has $145.4 million remaining under the original $200 million authorization approved by the Board of Directors in August 2010.

ABOUT CHICO’S FAS, INC.

     The Company is a women’s specialty retailer of private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items. The Company operates 1,192 specialty stores, including stores in 48 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico.

     The Chico’s brand currently operates 593 boutique and 71 outlet stores, publishes a catalog during key shopping periods throughout the year, and conducts e-commerce atwww.chicos.com.

     White House | Black Market currently operates 351 boutique and 24 outlet stores, publishes a catalog highlighting its latest fashions and conducts e-commerce atwww.whbm.com.

     Soma Intimates is the Company’s developing concept with 141 boutique stores and 12 outlet stores today. Soma Intimates also publishes a catalog for its customers and conducts e-commerce atwww.soma.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

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future results, performance, or achievements expressed or implied by such forward-looking statements will occur. Users of 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.

For more detailed information on Chico’s FAS, Inc., please go to our corporate website,www.chicosfas.com.

(Financial Tables Follow)

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Chico’s FAS, Inc.
Consolidated Statements of Income
(Unaudited)
(in thousands, except per share amounts)

	Thirteen Weeks Ended
	April 30, 2011				May 1, 2010
	Amount		% of Sales		Amount		% of Sales
Net Sales:
Chico’s/Soma Intimates	$	374,934		69.8	$	336,700		69.9
White House | Black Market		162,224		30.2		144,888		30.1
Net sales		537,158		100.0		481,588		100.0
Cost of goods sold		219,495		40.9		200,008		41.5
Gross margin		317,663		59.1		281,580		58.5
Selling, general and administrative expenses:
Store and direct operating expenses		180,114		33.5		167,826		34.8
Marketing		30,898		5.7		29,080		6.0
National Store Support Center		32,431		6.0		28,800		6.0
Impairment charges		1,402		0.3		822		0.2
Total selling, general and administrative expenses		244,845		45.5		226,528		47.0
Income from operations		72,818		13.6		55,052		11.5
Interest income, net		400		0.0		450		0.0
Income before income taxes		73,218		13.6		55,502		11.5
Income tax provision		27,300		5.1		20,100		4.1
Net income	$	45,918		8.5	$	35,402		7.4
Per share data:
Net income per common share—basic	$	0.26			$	0.20
Net income per common and common equivalent share—diluted	$	0.26			$	0.20
Weighted average common shares outstanding—basic		174,881				177,336
Weighted average common and common equivalent shares outstanding—diluted		176,112				178,833
Dividends declared per share	$	0.10			$	0.08

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Chico’s FAS, Inc.
Consolidated Balance Sheets
(in thousands)

	April 30,			January 29,			May 1,
	2011			2011			2010
	(Unaudited)						(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	123,409		$	14,695		$	32,694
Marketable securities, at fair value		442,815			534,019			449,167
Receivables		5,590			3,845			3,857
Income tax receivable		713			6,565			631
Inventories		198,544			159,814			160,448
Prepaid expenses		27,368			26,851			25,546
Deferred taxes		11,479			10,976			10,684
Total Current Assets		809,918			756,765			683,027
Property and Equipment:
Land and land improvements		43,161			42,468			22,043
Building and building improvements		90,813			89,328			82,440
Equipment, furniture and fixtures		434,330			428,217			398,132
Leasehold improvements		429,559			426,141			414,369
Total Property and Equipment		997,863			986,154			916,984
Less accumulated depreciation and amortization		(489,900	)		(468,777	)		(405,140	)
Property and Equipment, Net		507,963			517,377			511,844
Other Assets:
Goodwill		96,774			96,774			96,774
Other intangible assets		38,930			38,930			38,930
Deferred taxes		1,791			964			38,755
Other assets, net		5,342			5,211			25,119
Total Other Assets		142,837			141,879			199,578
	$	1,460,718		$	1,416,021		$	1,394,449
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	127,758		$	106,665		$	101,570
Accrued liabilities		121,974			94,852			126,720
Current portion of deferred liabilities		20,854			19,760			19,622
Total Current Liabilities		270,586			221,277			247,912
Noncurrent Liabilities:
Deferred liabilities		127,769			129,837			139,600
Stockholders’ Equity:
Preferred stock		—			—			—
Common stock		1,762			1,779			1,787
Additional paid-in capital		287,853			282,528			272,153
Retained earnings		772,215			780,212			732,741
Accumulated other comprehensive income		533			388			256
Total Stockholders’ Equity		1,062,363			1,064,907			1,006,937
	$	1,460,718		$	1,416,021		$	1,394,449

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Chico’s FAS, Inc.
Consolidated Cash Flow Statements
(Unaudited)
(in thousands)

	Thirteen Weeks Ended
	April 30,			May 1,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	45,918		$	35,402
Adjustments to reconcile net income to net cash provided by operating activities —
Depreciation and amortization		24,188			23,362
Deferred tax benefit		(1,375	)		(3,640	)
Stock-based compensation expense		3,636			2,831
Excess tax benefit from stock-based compensation		(762	)		(707	)
Impairment charges		1,402			822
Deferred rent and lease credits		(4,330	)		(4,140	)
Loss on disposal of property and equipment		32			766
(Increase) decrease in assets —
Receivables, net		(1,745	)		65
Income tax receivable		5,852			(319	)
Inventories		(38,730	)		(21,932	)
Prepaid expenses and other		(648	)		(1,373	)
Increase in liabilities —
Accounts payable		12,283			15,203
Accrued and other deferred liabilities		31,240			33,123
Total adjustments		31,043			44,061
Net cash provided by operating activities		76,961			79,463
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in marketable securities		91,349			(62,816	)
Purchases of property and equipment		(16,208	)		(15,264	)
Net cash provided by (used in) investing activities		75,141			(78,080	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		1,373			920
Excess tax benefit from stock-based compensation		762			707
Dividends paid		(8,835	)		(7,136	)
Repurchase of common stock		(36,688	)		(223	)
Net cash used in financing activities		(43,388	)		(5,732	)
Net increase (decrease) in cash and cash equivalents		108,714			(4,349	)
CASH AND CASH EQUIVALENTS,Beginning of period		14,695			37,043
CASH AND CASH EQUIVALENTS,End of period	$	123,409		$	32,694

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Chico’s FAS, Inc.
Boutique Count and Square Footage
As of April 30, 2011

	As of		New					As of
	1/29/2011		Stores		Closures			4/30/2011
Store count:
Chico’s frontline boutiques		597		2		(4	)		595
Chico’s outlets		63		8		—			71
WH|BM frontline boutiques		342		9		(1	)		350
WH|BM outlets		21		3		—			24
Soma frontline boutiques		120		16		(2	)		134
Soma outlets		8		4		(2	)		10
Total Chico’s FAS, Inc.		1,151		42		(9	)		1,184

								Remodels/
								Relos and
	As of		New					change in			As of
	1/29/2011		Stores		Closures			SSF			4/30/2011
Net selling square footage (SSF):
Chico’s frontline boutiques		1,606,394		4,582		(7,102	)		1,877			1,605,751
Chico’s outlets		166,123		18,933		—			—			185,056
WH|BM frontline boutiques		710,480		20,035		(1,273	)		1,383			730,625
WH|BM outlets		40,421		5,925		—			—			46,346
Soma frontline boutiques		246,688		32,346		(5,240	)		(446	)		273,348
Soma outlets		14,817		8,138		(4,207	)		(594	)		18,154
Total Chico’s FAS, Inc.		2,784,923		89,959		(17,822	)		2,220			2,859,280

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