Exhibit 99.1
[CHICO'S NEWSRELEASE LOGO]
Chico's FAS, Inc. - 11215 Metro Parkway - Fort Myers, Florida 33912
(239) 277-6200 - Fax: (239) 277-5237
FOR IMMEDIATE RELEASE
Executive Contact: Investor / Media Contacts:
Charles J. Kleman James Palczynski-Investor Relations
Chief Operating Officer Megan McDonnell-Media Relations
Chief Financial Officer Integrated Corporate Relations, Inc.
Chico's FAS, Inc. (203) 222-9013
(239) 274-4105
CHICO'S FAS, Inc. ANNOUNCES RECORD SECOND QUARTER AND
SIX MONTH REVENUES AND EARNINGS
- SECOND QUARTER NET INCOME UP 45.1% TO A RECORD $35 MILLION
- REVENUES ROSE 49.4% TO A RECORD $512 MILLION FOR THE SIX MONTHS
- NET INCOME CLIMBED 48.8% TO A RECORD $71 MILLION FOR THE SIX MONTHS
- AUGUST COMPARABLE STORE SALES CURRENTLY IN THE 6%- 8% RANGE
FORT MYERS, FL - AUGUST 26, 2004 - Chico's FAS, Inc. (NYSE: CHS) today
announced its financial results for the second quarter and six months ended July
31, 2004.
Net sales for the second quarter ended July 31, 2004, increased 46.9% to a
record $255 million from $173 million for the second quarter ended August 2,
2003. Net income rose 45.1% to $35 million, or $0.39 a diluted share, compared
to net income of $24 million, or $0.28 a diluted share, in the prior year's
second quarter. Comparable store sales for the Company-owned stores increased
14.1% for the thirteen-week period ended July 31, 2004, compared to the same
thirteen-week period last year.
For the six months ended July 31, 2004, net sales increased 49.4% to a
record $512 million from $342 million for the prior year's six months ended
August 2, 2003. Net income rose 48.8% to $71 million, or $0.79 a diluted share,
compared to net income of $48 million, or $0.55 a diluted share, in the prior
period. Comparable store sales for Company-owned stores increased 17.0% for the
twenty-six week period compared to the same twenty-six week period last year.
Scott A. Edmonds, President and CEO, commented, "Our second quarter
financial results demonstrate the continued strength and momentum of the Chico's
brand. We are extremely pleased with the Company's record net sales, net income,
and comparable store sales results. Our industry leading operating margin of
22.3% for the second consecutive quarter further demonstrates our ability to
consistently deliver strong results to our shareholders. In addition, we are
very pleased with our current August same store sales results and the strong
reaction we are seeing to the introduction of our Fall merchandise."
"The White House|Black Market brand again contributed between $.02 and
$.025 to our $.39 diluted earnings per share and we are looking forward to the
launch of a frequent
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shopper club for their vast customer base. We feel stronger than ever about the
White House|Black Market brand's potential to bring significant long-term value
to our shareholders."
Mr. Edmonds further stated, "Our financial strength and ability to
leverage expertise in numerous disciplines of the business provides us with the
opportunity to continue to grow and extend the Chico's brand. As we begin the
launch of our new intimate apparel concept, "Soma by Chico's," we look forward
to providing our customer with the outstanding product, personalized service,
and unique shopping experience she has come to know and enjoy at Chico's. Even
though our accomplishments to date have been significant, we believe that our
best and biggest opportunities still lie ahead."
Chico's sells exclusively designed, private-label women's clothing and
related accessories. The Company operates 603 women's specialty stores,
including stores in 47 states, the District of Columbia, the Virgin Islands and
Puerto Rico operating under the Chico's, White House | Black Market and Soma by
Chico's names. The Company owns 425 Chico's front-line stores, 24 Chico's outlet
stores, 139 White House | Black Market front-line stores, 1 White House | Black
Market outlet store and 3 Soma by Chico's stores; franchisees own and operate 11
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 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, PLEASE CALL (877) 424-4267 TO LISTEN TO CHICO'S
MONTHLY SALES INFORMATION AND INVESTOR RELATIONS LINE
A COPY OF A SLIDE SHOW ADDRESSING CHICO'S RECENT FINANCIAL RESULTS AND CURRENT
PLANS FOR EXPANSION IS AVAILABLE ON THE CHICO'S WEBSITE AT www.chicos.com IN THE
INVESTOR RELATIONS SECTION
ADDITIONAL INVESTOR INFORMATION ON CHICO'S FAS, INC. IS AVAILABLE FREE OF CHARGE
ON THE CHICO'S WEBSITE AT www.chicos.com IN THE INVESTOR RELATIONS SECTION
(Financial Tables Follow)
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CHICO'S FAS, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands)
JULY 31, JANUARY 31,
2004 2004
--------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 13,252 $ 15,676
Marketable securities, at market 201,907 104,453
Receivables 5,175 6,368
Inventories 61,965 54,896
Prepaid expenses 10,070 8,655
Deferred taxes 8,945 7,525
--------- ---------
TOTAL CURRENT ASSETS 301,314 197,573
--------- ---------
PROPERTY AND EQUIPMENT:
Land and land improvements 6,032 5,976
Building and building improvements 25,889 25,014
Equipment, furniture and fixtures 118,769 100,589
Leasehold improvements 113,372 99,806
--------- ---------
TOTAL PROPERTY AND EQUIPMENT 264,062 231,385
Less accumulated depreciation and amortization (71,817) (57,660)
--------- ---------
PROPERTY AND EQUIPMENT, NET 192,245 173,725
--------- ---------
OTHER ASSETS:
Goodwill 60,370 60,114
Other intangible assets 34,012 34,043
Other assets, net 6,403 5,399
--------- ---------
TOTAL OTHER ASSETS 100,785 99,556
--------- ---------
$ 594,344 $ 470,854
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 31,963 $ 27,796
Accrued liabilities 45,488 43,187
Current portion of deferred liabilities 243 599
--------- ---------
TOTAL CURRENT LIABILITIES 77,694 71,582
--------- ---------
NONCURRENT LIABILITIES:
Deferred liabilities 13,877 12,713
Deferred taxes 12,194 11,724
--------- ---------
TOTAL NONCURRENT LIABILITIES 26,071 24,437
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 894 875
Additional paid-in capital 143,256 98,586
Retained earnings 346,500 275,339
Accumulated other comprehensive (loss) income (71) 35
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 490,579 374,835
--------- ---------
$ 594,344 $ 470,854
========= =========
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CHICO'S FAS, Inc.
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
TWENTY-SIX WEEKS ENDED THIRTEEN WEEKS ENDED
----------------------------------- ------------------------------------
JULY 31, 2004 AUGUST 2, 2003 JULY 31, 2004 AUGUST 2, 2003
---------------- ---------------- ---------------- -----------------
% OF % OF % OF % OF
AMOUNT SALES AMOUNT SALES AMOUNT SALES AMOUNT SALES
-------- ----- -------- ----- -------- ----- -------- -----
Net sales by Company stores $495,166 96.8 $328,310 95.9 $246,679 96.8 $166,869 96.2
Net sales by catalog & Internet 12,412 2.4 10,505 3.1 6,330 2.5 4,823 2.8
Net sales to franchisees 3,980 0.8 3,606 1.0 1,758 0.7 1,744 1.0
-------- ----- -------- ----- -------- ----- -------- -----
NET SALES 511,558 100.0 342,421 100.0 254,767 100.0 173,436 100.0
Cost of goods sold 195,037 38.1 130,523 38.1 98,082 38.5 65,834 38.0
-------- ----- -------- ----- -------- ----- -------- -----
GROSS PROFIT 316,521 61.9 211,898 61.9 156,685 61.5 107,602 62.0
General, administrative and
store operating expenses 188,799 36.9 125,694 36.7 92,994 36.5 63,410 36.5
Depreciation and amortization 13,701 2.7 9,602 2.8 6,924 2.7 4,977 2.9
-------- ----- -------- ----- -------- ----- -------- -----
INCOME FROM OPERATIONS 114,021 22.3 76,602 22.4 56,767 22.3 39,215 22.6
Interest income, net 753 0.1 549 0.1 484 0.2 246 0.1
-------- ----- -------- ----- -------- ----- -------- -----
INCOME BEFORE TAXES 114,774 22.4 77,151 22.5 57,251 22.5 39,461 22.7
Income tax provision 43,613 8.5 29,317 8.5 21,755 8.6 14,995 8.6
-------- ----- -------- ----- -------- ----- -------- -----
NET INCOME $ 71,161 13.9 $ 47,834 14.0 $ 35,496 13.9 $ 24,466 14.1
======== ===== ======== ===== ======== ===== ======== =====
PER SHARE DATA:
Net income per common share -
basic $ 0.80 $ 0.56 $ 0.40 $ 0.28
======== ======== ======== ========
Net income per common & common
equivalent share - diluted $ 0.79 $ 0.55 $ 0.39 $ 0.28
======== ======== ======== ========
Weighted average common shares
outstanding - basic 88,878 85,741 89,286 85,969
======== ======== ======== ========
Weighted average common &
common equivalent shares
outstanding - diluted 89,983 87,405 90,189 87,618
======== ======== ======== ========
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