Chico's Fas (CHS) 8-K Chico’s FAS, Inc. Announces Record Third Quarter and Nine Month Revenues and Earnings

For Immediate Release

Executive Contacts:
Charles J. Kleman	F. Michael Smith
Chief Financial Officer	Vice President
Chico’s FAS, Inc.	Investor and Community Relations
(239) 274-4105	Chico’s FAS, Inc.
	(239) 274-4797

Chico’s FAS, Inc. Announces Record Third Quarter and Nine
Month Revenues and Earnings

• Third quarter net income up 43.5% to a record $53 million

• Revenues rose 31.7% to a record $1.029 billion for the nine months

• Net income climbed 38.1% to a record $150 million for the nine months

     Fort Myers, FL- November 29, 2005- Chico’s FAS, Inc. (NYSE: CHS) today announced its financial results for the third quarter and nine months ended October 29, 2005.

     Net sales for the third quarter ended October 29, 2005, increased 33.0% to a record $359 million from $270 million for the third quarter ended October 30, 2004. Net income rose 43.5% to $53 million, or $0.29 a diluted share, compared to net income of $37 million, or $0.21 a diluted share (as adjusted for the 2 for 1 stock split in February 2005) in the prior year’s third quarter. Comparable store sales for the Company-owned stores increased 16.0% for the thirteen-week period ended October 29, 2005 compared to the same thirteen-week period last year.

     For the nine months ended October 29, 2005, net sales increased 31.7% to a record $1.029 billion from $781 million for the prior year’s nine months ended October 30, 2004. Net income rose 38.1% to $150 million, or $0.82 a diluted share, compared to net income of $108 million, or $0.60 a diluted share (as adjusted for the 2 for 1 stock split in February 2005) in the prior period. Comparable store sales for the Company-owned stores increased 14.2% for the thirty-nine week period compared to the same thirty-nine week period last year.

     Scott A. Edmonds, Chico’s President and CEO, commented, “The third quarter’s operating margin of 22.9% is our best operating margin since going public in 1993. This record-setting operating margin is largely a result of our outstanding merchandise offerings and from our merchants’ commitment to improving average retail price points and initial markups, each of which also contributed to our third quarter double digit same store sales. As we separately reported, the third quarter’s double digit same store sales trends have continued into the first month of our fourth quarter with a 11.8% same store sales increase for November.”

     Mr. Edmonds continued, “Given the momentum of the White House | Black Market brand and upcoming real estate opportunities, we feel it is prudent to accelerate this brand’s store opening program for fiscal 2006 by increasing our original planned growth by an additional 20 new stores. The partnership between the White House | Black Market merchandising teams and the Chico’s operations teams has worked better and quicker than

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expected and we are delighted to be able to leverage these results by adding these additional stores to our planned openings. This will bring the Company’s fiscal 2006 new store plan to approximately 150 net new stores, with the breakdown by brand being approximately 70 White House | Black Market stores, 60 Chico’s stores, and 20 Soma by Chico’s stores.”

     The Company is a specialty retailer of private label, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items. The Company operates 757 women’s specialty stores, including stores in 47 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico operating under the Chico’s, White House | Black Market and Soma by Chico’s names. The Company owns 498 Chico’s front-line stores, 29 Chico’s outlet stores, 196 White House | Black Market front-line stores, 6 White House | Black Market outlet stores and 15 Soma by Chico’s stores; franchisees own and operate 13 Chico’s stores.

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. Users of forward-looking statements are encouraged to review the Company’s latest annual report onForm 10-K, its filings onForm 10-Q, management’s discussion and analysis in the Company’s latest annual report to stockholders, the Company’s filings onForm 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, please call (877) 424-4267 to listen to the Company’s monthly
sales information and investor relations line

A copy of a slide show addressing the Company’s recent financial results and current plans
for expansion is available on the Company’s website at http://www.chicos.comin the
investor relations section

Additional investor information on Chico’s FAS, Inc. is available free of charge on the Company’s
website at http://www.chicos.comin the investor relations section

(Financial Tables Follow)

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

	October 29,			January 29,
	2005			2005
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	18,121		$	14,426
Marketable securities, at market		382,160			251,199
Receivables		9,634			5,106
Inventories		101,531			73,223
Prepaid expenses		12,935			9,429
Deferred taxes		16,149			11,184
Total Current Assets		540,530			364,567
Property and Equipment:
Land and land improvements		7,078			6,055
Building and building improvements		33,087			29,286
Equipment, furniture and fixtures		178,210			140,360
Leasehold improvements		201,141			166,096
Total Property and Equipment		419,516			341,797
Less accumulated depreciation and amortization		(119,577	)		(93,834	)
Property and Equipment, Net		299,939			247,963
Other Assets:
Goodwill		61,796			61,796
Other intangible assets		34,064			34,042
Other assets, net		19,383			7,361
Total Other Assets		115,243			103,199
	$	955,712		$	715,729
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	67,519		$	36,725
Accrued liabilities		83,000			58,258
Current portion of deferred liabilities		524			332
Total Current Liabilities		151,043			95,315
Noncurrent Liabilities:
Deferred liabilities		60,878			47,149
Deferred taxes		2,010			12,397
Total Noncurrent Liabilities		62,888			59,546
Stockholders’ Equity:
Common stock		1,810			1,790
Additional paid-in capital		183,152			147,652
Unearned compensation		(4,143	)		—
Retained earnings		561,077			411,556
Accumulated other comprehensive loss		(115	)		(130	)
Total Stockholders’ Equity		741,781			560,868
	$	955,712		$	715,729

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

	Thirty-Nine Weeks Ended								Thirteen Weeks Ended
	October 29, 2005				October 30, 2004				October 29, 2005				October 30, 2004
	Amount		% of Sales		Amount		% of Sales		Amount		% of Sales		Amount		% of Sales
Net sales by Chico’s/Soma stores	$	816,672		79.4	$	658,472		84.3	$	277,601		77.4	$	226,129		83.8
Net sales by White House / Black Market stores		179,545		17.4		97,117		12.4		68,450		19.1		34,292		12.7
Net sales by catalog & Internet		24,526		2.4		19,402		2.5		9,534		2.6		6,991		2.6
Net sales to franchisees		8,102		0.8		6,340		0.8		3,080		0.9		2,361		0.9
Net sales		1,028,845		100.0		781,331		100.0		358,665		100.0		269,773		100.0
Cost of goods sold		394,935		38.4		296,605		38.0		133,308		37.2		101,568		37.7
Gross profit		633,910		61.6		484,726		62.0		225,357		62.8		168,205		62.3
General, administrative and store operating expenses		371,041		36.1		290,775		37.2		131,711		36.7		101,976		37.8
Depreciation and amortization		31,192		3.0		20,748		2.6		11,339		3.2		7,047		2.6
Income from operations		231,677		22.5		173,203		22.2		82,307		22.9		59,182		21.9
Interest income, net		5,658		0.5		1,373		0.2		2,154		0.6		620		0.2
Income before taxes		237,335		23.0		174,576		22.4		84,461		23.5		59,802		22.1
Income tax provision		87,814		8.5		66,338		8.5		31,251		8.7		22,725		8.4
Net income	$	149,521		14.5	$	108,238		13.9	$	53,210		14.8	$	37,077		13.7
Per share data:
Net income per common share—basic(1)	$	0.83			$	0.61			$	0.29			$	0.21
Net income per common & common equivalent share—diluted(1)	$	0.82			$	0.60			$	0.29			$	0.21
Weighted average common shares outstanding—basic(1)		180,218				178,079				180,639				178,722
Weighted average common & common equivalent shares outstanding—diluted(1)		182,115				180,044				182,556				180,238

⁽¹⁾ Prior year amounts restated to give effect to the 2 for 1 stock split in February 2005

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