CHS - Earnings call transcript Q2 2019

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Operator

Good day, and welcome to the Chico's FAS, Inc.'s Second Quarter Earnings Call and Webcast. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions.

I would now like to turn the conference over to Julie Lorigan, Vice President of Investor Relations, Public Relations and Corporate Communications. Please go ahead, ma'am.

Julie Lorigan

Thanks, Rocco, and good morning, everyone. Second Earnings FAS Webcast. Call Chico's to Quarter Conference XXXX and Welcome

me our Chief Vogensen, Brooks, are Financial and Joining Bonnie Todd CEO today President, and Officer. our

at be earnings on Our today Investor can issued our Press release website www.chicosfas.com Releases. under Relations, found

you business caution will comments which of only and our our today's statements judgments and today's include plans, as expectations, industry, assumptions, that estimates, looking date. projections about me Let forward current about our speak

our except on could any otherwise or our in that actual on that revise law. those our forward-looking are filings statements. events this We You differ as results comments included issued required discussed should by to not the to factors are this this in or unduly may rely update morning information made projected be Important or forward-looking call in cause and disclaim materially SEC in call. from release implied earnings by any obligation statements

and quarter discussion In basis. addition, of non-GAAP will our financial be an or second comments adjusted on results

Bonnie. the this GAAP issued included our turn schedule with and that, our over reconciliation And non-GAAP release I'll it to find available with which press website. is morning, will on You

Bonnie Brooks

executive Thank and we being discussed morning, Since you, the team priorities operating my last on April three last everyone. Julie, attention in on as call. month, officially joining and CEO President the Interim CEO good and appointed has quarter's centered

customer marketing through product, First, selling improved and engagement driving sales stronger with enhanced tools.

And on is product and quality performance. And the operations increase supply transforming overall and and product our efficiencies. our chain optimizing extending unique and Second, journey third, improving my personalized these service. by customer sales digitizing focus simplifying, to areas main and sourcing

the business. term. critical over term necessary in long discipline performance the ensuring these It to have the we on the short Executing sustainable also financial drive essential is profitable to stabilize priorities to is

will shortly. in this While making greater progress, period I are of indeed we which review a is detail turnaround,

is an team that work both execution. establishing our accountability organizational and drives Key to and structure

performance, We leaders to have world-class our business recruited who of in proven now track directly related records have place.

working we In been to have optimize addition, structure. and diligently our quickly

we one Market, our our Company's and and a the for Soma Intimates Chico's under as Black consolidated White TellTale, brand, We brands group. with manage leader, House Apparel separate continuing reorganized how responsibility brands, and

Apparel our and Intimates sales-driving specific this to change lines responsibility have accelerate market clear and priorities. needs, of creates

sharing knowledge. we including corporate shared As processes have the and the making while at house service distinct simplify decision back for level, brand, also practice continuing of benefits best and the of groups, synergies to

change this market on efficiencies. structure a have our cost impact will And in positive our and to time increased

We of are house and becoming while merchandising, of also marketing safeguarding agile, each customer DNA brand. front nimble a more from and perspective design, unique and product the already

see and planning expectations extremely in already. buying, with development needed record identify contributions me her that with of has Molly started as role successful levels pleased Interim and President X, the Molly fashion operations brand industry clarity marketing. brands. August of CEO with has merchant retail are is My her accountability injected we the merchant and as retailer skills on veteran XX-year Apparel I Group. solid She and vertical expertise and experience, of we She redefined new a is needed. Company the to well Langenstein our in and organizations. multiple enabled Molly joined as a and proven role as and into deeper building am track pleased us

brands. Soma Mary and continue to President TellTale lead of our Group, Van Intimates will Praag,

innovation, customer superior reinvention Apparel Intimates experience have capture of The confident new distribution, job of a Intimates all delivered in retain XX.X% and momentum of on we team customer and demonstrated performance president the the organizations and Soma impactful growth, driving done excellent acquisition. term. long business over customers, group and each I As that and Mary four new has consecutive areas. Soma's today the our right am strong by positive deliver our quarters product sales in reported profitable team comp terrific of her channels the an to have digital, marketing, and in

me let our you performance financial and priorities. operating Now update review on briefly our

Second the were quarter, quarter strong and and comparable both line. sales aligned sequential results first by driven Consolidated improved in sales expectations, Chico's improvement top at Soma. bottom our with for the double-digit comparable over

year. comp brand's the four QX in best this one Soma's in the industry the fact, thus we performance of is In is believe far years and performers XX.X% of top

near-term discussed impacted also the results for White print challenges color. with and quarter and House In in we in last our second Market quarter QX identified contrast, Black misses

to our teams we brought is now. and on sales results board were On of in benefiting design liquidating fabric goods our aggressive with brand, we cleaner the note, in efforts part inventories. first positive As improve our August entered at the a support and quarter to non-performing talent the

the assortments, holiday in anticipate Fall and and for to August, Sales We X comps early better. improve set our seasons. continue trending will throughout fall which are stores trend online in that

DCOM business investing strong investments capabilities. a this increase channel advancing to omni-channel online in Sales double-digit through continues sorry, Our with in our quarter. continued by gain -- our momentum, driven

through one, our sales in Number progress to operating now executing driving product three improved marketing. stronger Turning and priorities.

my trend first stronger Chico's months product and comp more challenging categories this the are we largely improving key in been and where the forward. was mentioned, presentation three promotions. has by driven effective where focus moving is I here ourselves of At a my brand, As

We and simplified and artisan offered silhouettes colors sophisticated more prints.

narrowing buying focus We on and these items, also counts choice areas. product our deeper into to distorted assortment key

we more in-stock a needs. making are our meet customers her sure to and story cohesive to telling are We

fashion we accessories. momentum pants, in result, and sweaters, As tops knit saw a

of fashion. brand. to We course the balance benefiting to the items Black year improvement White throughout continue House assortments merchandise anticipate in Market, steps of further we a are with key better and our At back the correct took the half

have wear refined both categories. major and to fabrications work casual, elevated polished more offering are and We business

is teams White on Molly, and and our our our assortment, improving and August, are with digital Chico's an early resonates X very trends. Market encouraging programs customers emphasis we with House mentioned, and partnering I be which resonating in to set fine our customers. improvement continue involved seeing with sales data As I on that, channels marketing shows, the media tuning with and social product Fall Black

also and enhance our visuals assortments. online We to our continue new store to complement

quarter the forward XXXX. finalize that confident look are the are we vision drive spring as top We We improvements sharing making will we to next Molly's line.

work in product expertise. we better a do, on continue path and we level talent have While high bring with more are to to forward

and and momentum across in with the reflect positions These quarter DCOM comps the intensified significant growth double-digit second stores. strength Soma, launches, of At results marketing product stretch exceeded in-stock targets and programs. enhanced positive results new

quarter, well in much the our products outstanding innovative solution performed of While based performance. drove all categories the

top special We and two-day Excuse the also Soma's with recently in new event event. and celebrated greater XXth online drove traffic-driving very XX,XXX brand. than successful the This resulted to anniversary me. in-store line a customers

sorry, committed force both and the opportunities. -- moving optimizing momentum are are and continuing ahead, full to We we sales creating

the we enhanced have customer are offers and all seeing spend digital. holiday meet are In XXX collection. the our our optimizing our newest through third we significantly demands launching and have to expect the quarter, position Bra, we which and franchise To gift solution, expanded angles continue, market smoothness growth from increased Vanishing and overall the we are inventory

the of unlocked Soma highly team to and leadership that are and We holiday forward excited the successful potential look very brand for a its future fall season. has

our the customer focus area, Next, second optimizing journey.

thinking. customer the As the our CEO, center of at I be am must emphasizing that

that focused our only and training we are not optimize us. clienteling the To to connection are We our tool, their on deliver digitize we new our merchandise, to personal modernize with nearing with of now Style rolled Connect, end, and our and experience improved completion sales. fully engagement customers thereby with continue associate out,

We progress. quarter look you our to next on forward updating

of our way implementation the In complete serve in addition, to in will Buy convenient Store customers a of with our us that's stores be for end another we by BOPIS way Pick-up across expect Online October. provides them. the

quarter, focus up transformation. have to last third study a completed operations. supply our chain sourcing And follow chain, area, end-to-end our supply network supply In chain for and baseline we as

scenarios have network. to for set vetting distribution of result work, of currently are this efficient we a our most the option As we best that determine identified a

to cost. is efficiency strengthen product goal drive to lower better and ability new at deliver a our Our and higher quality frequency,

strategy, chain supply progress. our quickly to vendor base are support working our consolidate making are we To very good and

reviewed key set all the base months, vendors. our have top next of over And we'll a We reduce of significantly XX to current our relationships.

of XX%. additional will supplement a we we base where have of vendors subset reduction of that XXXX, XX% needs. we We of top to niche as anticipate vendor support an smaller decrease exit unique year's us last on And our with in a

over As key the we partnerships, greater we a product reach and and scale have terms ability achieve with better to will quality lower vendors, stronger cost. control

fast to on track reduce continue China. exposure We also our a in

Over XX of we Vietnam, to the compared the and we current be XX% months, we anticipate in penetration our low-XX% approximately sourcing will our more to Indonesia shift range of next as India.

value are FAS do Chico's the are at summary, so. we In enhancing committed creation taking we necessary to to and steps

optimize product We structural turnaround are changes of a to talent product, and architecture, in aesthetic improvements this in our and ensure in world-class business. to attracting making important successful learnings,

morning's Todd. I'd call our like this over turn to to CFO, now

Todd Vogensen

better X.X%, second in comparable with Thanks, ongoing We customer a in healthy our continue growth mixed and omni-platform reported Bonnie, outlook, and the sales see our channel. to our in strength did a the performance quarter and consolidated trend compared in across to journey will e-commerce down good morning, everyone. quarter believe investment brands. first We the reflecting fuel and line this for

our in in of strong. charges Moving inventory. per margin Market and inventories the accelerated quarter due the Chico's total line, investments long-lived X.X% year of clearing and breakeven was fleet growth planned. second in slightly to Chico's and earnings both reflects related and Black programs. were share at compared the excludes continued margin White adjusted last optimization with Market quarter, House to White we Merchandise Black down to reported to Soma new the House bottom inventory which the We fuel were Merchandise as impact existing to intimates depreciation down exited diluted program. retail

This gross primarily omni-channel sales. accelerated related to impact points. program also margin Overall, the costs on points, was due of expectations. depreciation reduced optimization was fixed with excludes of of basis of fleet to in to charges XXX costs XX the deleverage our This our line programs and expansion down basis related our

expenses. SG&A Moving

better Second million favorable Intimates marketing. employee-related is to year, by offset was to expected due last partially in $X.X compared investments Group SG&A quarter which down than expenses,

sheet cash and balance and in in we strong quarter remained and million with $XXX million $XX short-term investments, debt. ended Our the

We continue store remodels and investments in existing to focus and technology on our capital refreshes. expenditures

year-to-date. QX implement plan closed million to XX We fleet million our quarter XXXX, million. For is stores on continue second close for in invested $XX approximately We're We've and our as we XX optimization fiscal expenditures year-to-date. program. track capital in XX stores to to $XX approximately $XX XXXX the

returned we quarter, second $XX million the to In shareholders.

On under $XX million repurchases. approximately trailing shareholders repurchase quarters, dividends in We have and currently the approximately existing of form four $XX million returned to we've the authorization. share outstanding our share

to for the updated third I'll outlook for Now and our the full-year XXXX our outlook turn XXXX. financial quarter

charges the tariffs. third any to implementation net Our expected new the plan quarter of and optimization retail impact exclude the incremental fleet and full-year from outlook related

we in we trends throughout around. to the it's our traction of take gain posture and operating throughout our as sales half a in conservative as year anticipate Importantly, feel second do our outlook prudent improvement our we comparable turn priorities but gradual managed sales the

year's investments expect in basis gross points and margin down ongoing flat as For decline XXX a be due be offset quarter, clearing in fiscal to the approximately consolidated low-to-mid total our of a Group. by SG&A sales last expenses compared management, third quarter of inventory; seasonal percent single-digit sales comparable down marketing points, to cost to XXXX slightly, net Intimates third net XXX sales; of basis will to to our primarily approximately reflecting we in

down XXX our net costs in For XXX margin sales; full-year fiscal and consolidated XXXX incremental compared total will gross sales percent a in comparable of basis of to the the decline primarily a points net mid-single-digit as to half to we fourth we sales third SG&A the points to a cost associated due our $XX year range with be XX%, plan. basis inventory; to expect first last reflecting year, million, for quarters, of accelerated in And fleet down lastly, depreciation ongoing and omni-channel seasonal the approximately which to programs with of tax expect excludes and optimization clearing rate XX% management. related be

a guidance. Before the address comment tariff we to second half it our questions, your situation brief on as relates

said, working taken We've the receive of taken And of time, back we've the mitigate reduce our advantage X our we by September -- for opportunities goods to impacted exposure. planned September on be impact is will anticipate at That vendors sharing an advantage half factored the We margin tariffs List into our air to X. which before with shipping of cost not in guidance. to gross this X. to year,

Now Julie to let's for over turn the Q&A. call back

Julie Lorigan

Thank back you, time, over happy begin. question, this call and take we'd the Todd. to to turn I'll At be to Rocco your

Operator

Thank you.

begin question-and-answer will [Operator comes Today's of FBR. the session. We Instruction] question Susan Please first go Riley Anderson now B. ahead. from

Susan Anderson

there product. in Good so get been it for get at Chico's to and in there's Nice Chico's morning. in to improvement and like right your Soma. heading in much and thoughts ability sales missteps question. I'm around their sales Bonnie, on back terms the some curious you're of White the Thanks my strong track Clearly, see taking looks the to House, direction.

could the throughs get color old there? I'm White environment? out environment, comp well magnitude just Thanks. Because this case, if versus thoughts around far product on or apparel women's House to continue new would then win consolidate? the any you in sell you of do the I'm around improvement if to see curious color And some great. styles Are this just in so we that's be give styles, of do doing how your Maybe And that there competitors. curious, any

Bonnie Brooks

I well the really, think business Well, the the for way, was, when win my to in say, room would White of first environment. QX there's month, at some progress this did Thanks in role. not align joined for under Market in And for product, we I I lots questions. very that deliveries. us the merchandise the fall our made Black in mostly But House strong was expectations. revamping to of that new canceling

our market some key we are DNA White fall And the with and and And of that in remainder have where items. that believe deliveries the actually for we more year for better with appropriate this went early styles we to are product adjusted seeing at colors of yes, We possible, the the line out brand. results the of House. we certainly

excited, are We however, we're for what about seeing extremely spring.

obsessed House Molly And we're in Chico's our and changing and and really obsessed, -- organization much very with is that say the head. she's both nodding within would the I room and that product her customer the actually, of believe we the our to be the White business that here do us, control. future is

grasp. We making in business that we're very have and charged direction about sort is the question. within seen and a would that And team unlocking. lot -- no of opportunities the already of the I the the significant changes that these are excited are changes some organization, within we our But say

we're So, here. pretty excited

Susan Anderson

Todd, also, the at quarter. -- good I is could decline maybe just White or That's looking some is clearing aesthetic. had promotions question given fall to most House guess, then the third hear. Great. I at or fully more to of on kind if last product, the a And margin sales I maybe from shifted clearance new when of the guess you season especially, continued related guess gross I to not to related

give third if margin kind maybe or the versus margin for at some quarter? was So then color and gross you House Chico's quarter, merch expectations White I Thanks. too of in curious, in

Todd Vogensen

Sure.

a and that with they top which staying they did -- it see Chico's And worked have I versus is sign. QX, helped versus ended what did White on actually House very a coming did their can they quarter, certainly were bought for quarter. their their of you first is improvement roughly inventories had than was their year, in and -- an comps lower as surprising So nice the margin job up comps, flat to. stay top not sales last on fantastic Merch on which through

White merchandise not did that House have Market, more And the had at impact White planned Black they margin did So overall than have for discounts point. on that an surprisingly. House

the do House into job their through look quarter. good conservative QX. taking the we're as that to again, little appropriate through end QX, amount a inventory. a to at be we going on inventories really the we expectations through go as say, carryover. go ourselves as be is we stay all only go and then and taking we a need going important quarter White we're clearing sure would little stance did of could bit that to I room are a fourth the allow QX, that but that into make certain there carryover bit of move most, discounts able up we As we of to we a they into where of those into of top sure we There's And making

Susan Anderson

Great. That's much. helpful. so luck next quarter. Thanks Good

Operator

Greenberger question Our from today Stanley. Morgan Please of go next Kimberly comes ahead.

Kimberly Greenberger

much. positive so White And Chico's just you we there a negative. back at get XXXX. then as of QX a if as get you're as Bonnie, actually comp and about comps could think I'm level will they wondering we sort QX wondering House see you bit can of trends like enough is XXXX. you it product about that Market get of Chico's see improving when like some you comps. feel be sounds at Market Thank you feeling where might into I or execution less the strong product the Great. I'm positive very excited product let's White talk and know say can certainly soon you're if early House to Black Black

it's or a information that comment to just share so be point? just half what too the follow to it's impact the fluid on you that your be on it exactly prepared will And you in up situation, tariffs. tough to payments guidance, is with at this Thank know not it's know -- on calculate And to call? so tariff us including the November would the difficult The much. then, Todd, I back I wanted tariff

Bonnie Brooks

Okay. Do Thanks, go Kimberly. you first? want to

Todd Vogensen

tariffs we know about this for what point. Okay, at

You're our costs working relationships course with us with half. right, very been have been vendors good it on the We've how we in The is we now. the really for situation second of through us. can is have news very proactive pleased go as those benefits fluid those paid how a mitigate

we and things last into XX% at look on for us. we representative it X, the exposure come if the that more know based change have of But quickly. coming with goods know If rules knows caveat with what as timing is significant now, Lord now, fairly on what trade does I we XX% September US around and we China, come would our being night out you unmitigated is so our know, through amounts

I million to range very point. are our It would mitigations But this we're and we'd exposure our on, But guidance QX. as point, we'd go vendors million. be -- then we know as expect over we and from the trying transparent we the counting into fluid give the be million $X that other much at possible, conservatively again, are as in things getting with expect more you even things are think, confident this we $X and what to $XX without better, to be at our working giving

Kimberly Greenberger

gross Todd, And million $XX that million annual and to $X the million the net? $X is an exposure,

Todd Vogensen

of That the year XXXX just Yes, for the exposure. thank remainder you is clarifying.

Kimberly Greenberger

Thanks. Okay.

Bonnie Brooks

her question yet. styles, doing we and that Market think and the given White of I say faster. Black takes the that impact breadth doing will of and definitely DNA, is I House and spring answered the would and White work team unique Chico's. haven't Kimberly, is can the say impact longer collections little I a a at sorry, which little the that part both variety is your Chico's House would I Molly that

And desperately lead still on have one quarter. we're try our of And fourth reducing the moving here product, new for working to that quickly is the on we products. of things some product times are to

quarter about coming we are that things the are improving on excited towards each working top and So definitely line. the continuously

Operator

you. Thank

today Jefferies. from go Janine ahead. Stichter Our next question comes Please of

Janine Stichter

thought my bit of the that presidents. of Group unite some to versus decision? for Apparel and Thanks a about there wanted expect any little then good terms your see and taking just to maybe in two bring process a leader little benefits the work and morning, everyone. brand decision bit to I question. the Talk Molly expect separate you one structure just efficiency under Hi, from in about the ask you having

Bonnie Brooks

Sure.

and brands First executive. of all, multiple I people already think time career. And in realize, as a Molly has she the -- merchant is same at very led her seasoned

leads we're place what messaging customers. and ensuring teams have very keeping marketing is drive to that teams DNA their each are individual strong design in merchant brands and the for to the we doing brand. The right the So also the

is to more functions And that efficient we to and believe can team next And six really one are quickly our in do the combine we the those a across lot. because that businesses will months. this be important learning under learnings agility very It was critical. applied be

So already the that. seeing of we're actually benefit

pleased. very In honest, that structure, Will be we're our the it result objective. not in was cost efficiencies? terms To of

was objective agility, and and to teams design necessary making to primarily. and changes Our speed merchandising

Janine Stichter

on And one Perfect. Helpful. Thank then question the SG&A. more you. just

I think year-over-year. around million reiterated of guidance $XX you the

do if cut and reduce? were of think cost to from you you feel are at reduce kind be of coming additional you more, opportunities like do point, want As you structure, expenses everything the or areas wouldn't this necessarily look to you kind comfortable that it would you've cutting, there at you're customer-facing

Bonnie Brooks

to do Todd, you want that? answer

Todd Vogensen

Yes.

Sorry.

but things look is it'll continue we've to absolutely So helpful core our look point, in for be to we at to a believe set ways At SG&A. with we've but guidance. lens There a is continue organization give no appropriately to -- doubt. to stated, this it's have that Molly and to will types think And expense always we and come time that be. is a continue of truly We Bonnie that over other believe look at, savings. perspective for us we continue different think looking said, fresh proven we I in I always absolutely should good skill it's and finds that to that on

Operator

from our Please And next question Meyer Partners. Roxanne today MKM ahead. go of comes

Roxanne Meyer

Great. My follow is first Good morning. question -- up a

Todd Vogensen

you kind of... are Roxanne,

Operator

sorry, I'm breaking is line Rox your up. Meyer,

Roxanne Meyer

Can you hear me now?

Operator

up, breaking ma'am. still You're

Roxanne Meyer

to the queue. back have might get into I

Operator

Trussell to Yes Deutsche Today's ma'am. We'll the move next Bank. question ahead. of Paul go on Please next question. from comes

Gabby Carbone

that good Gabby of end remainder the morning. from guidance, This the year, of Kind for gross is a about October? will impact through of margin to this the implantation moving thinking on should going Carbone of Hi, quick Paul. follow back omni-channel of we given both your programs be how the And up? be just the completed have at I then Thanks. the

Todd Vogensen

ship-from-store of talk us. cost products, implemented last program about for from implementation on that. store -- -- year, has that program you been there shipping for has wrapping We we cost are So and some some program a shipping the and is around I to our that that that as we individual

offset have those with Now sales we upside. we than more costs that think

our visibility allowing continues just and by channel those goods the Our part channel. feature greater DCOM grow to is for it improving function as of to plain overall online well driven as

As we're help whatever augment get that she known too give buying. are is would into other associates that don't that our ourselves, it the their that in, when Online phase. may are she her want to items comes service visibility and is the the within who sales go is ahead assortment of Pick-up Store we're for but in we purpose far BOPIS, we early, of Buy to in I -- really testing

win so in lot be to And that of net a should ways. a us

call, we're much better, into the that. a early, and expect -- I just End you fulsome more October, all be to earnings of we entire we our Company on think again, So well as if we're have for go for testing. next we'll answer goes

Gabby Carbone

'XX? Got the kind beyond it. And assume Thanks. we should cut And in guidance for the year? then -- CapEx the what it in this of on is driving the range

Todd Vogensen

we've I the been don't yet, years. last over that to to range several gotten but in $XX think $XX million million we've consistently XXXX

just this lot year, there's a As we at of timing. look

timing outs and look of As enhancements, in, timing as get lot able look and you're programs refreshes are the equipment to right there you and at and comes the of when out, remodel store a you technology ins consultants. when

And our always so well that's I it, part plain spend do. would as just as we and controlling of containing as say,

Gabby Carbone

right. Thanks All so much.

Operator

Instruction] ahead. comes go Marni of from [Operator Today's Shapiro The Retail question next Tracker. Please

Marni Shapiro

nice have It's you both to here.

for One, two Todd. have I So quick just questions.

the event? you of goods hit a would will guys hits more Is or to an you've tariffs, there fourth you that is cost in. said if question. that And that in said -- the tariffs an that third increased be were earlier the airship On you in that I the quarter? Sorry the quarter and then XXXX missed from

Todd Vogensen

is we extra cost. versus No, what from When all. the we get of we look goods, benefit at the not at airing what all around we in math the did get savings those goods, is the

that have costs wouldn't not for up in point. amount maintain of way margin for we cost material model aired at in, getting this in so to goods about that not did incremental worry our a to it trying us. is would And extra ended I it overall The material just yes,

goods the tariffs QX. into sold. are those come exposure would that And and fall so for costs QX and already we into most we the recognize when of goods since the -- just tariffs those terms in, In eventually inherently unmitigated gets don't of

that main quarter see quarter So QX going some to we we're looking the fourth much will yes, significant. being more QX is be Obviously, but are at, impact.

Marni Shapiro

in about you said true the was sequentially. little House I it could a in White full was or then you online, Was and that improvement outlet line at there all bit at talk that guess, And Bonnie, just Great. was stores? -- Chico's? And

Todd Vogensen

about you August? Sorry, talking Marni, are

Marni Shapiro

Yes.

improvement sequential the did all if across that or sequentially? well retail And So about see And was as in outlet well that to stores and was talked of you a points sales. did online as distribution? I House? your Company as know as want stores You've it Chico's the improve specific to White your Chico's in stores

Bonnie Brooks

significant has Marni, that -- that the White Right. in say been would there a improvement I House.

continue and will we have So August. that confident that in that we are seen

growing are As our DCOM is stores the our the faster we in increase. not double-digit in But certainly we're know, with that sales than and you alone thrilled situation. DCOM actually

through So a lot drive of we're No continuing channel. the sales digital our to question.

Our outlet sequential certainly and brands, business improvement. strong is for looking are we both

Marni Shapiro

you, of Excellent. guys. Best Thank luck.

Bonnie Brooks

on we're job that and is to brilliant brand. of Mary so Soma level. her business And And a driving about team new pretty done excited have this that fire,

So certainly the company. obviously whole is it helping

Operator

our And Partners. Roxanne Meyer today question from ahead. go next of MKM comes Please

Roxanne Meyer

Can morning. good me? you Hi, hear

Todd Vogensen

back. can Welcome We indeed.

Roxanne Meyer

the a could House. to had longer question a I And follow Is just Chico's on right actually was and overall that'd way? take balance fashion be of more perfect. wanted turn basics, clarify Or Oh, I that relative the Chico's to you under just If on that, it comment that. innovation? to it great. earlier is thought to could of on which matter a about up getting on White I

Bonnie Brooks

something the of bringing it critical brand, task, we've complicated. and because very is which in working is the diligently was back the that on but much go focused easy And that DNA to artisanal. an The truth Chico's we on DNA like I been is think are that Sure. may forward, sound that of

all looking of by garment. sellers at best why the and books the and we years, years and years, very look every last the the from last And looking of when the investigating are, the number you of XX over Company at single best at the way,

on the work, did sales work. from lot Very lead short very largely that And can't come that DNA a a came artisanal product is and here. products. the And on around turn you detailed time. of there's work going So diligent

hope So that -- clarifies that to your I question.

Roxanne Meyer

so you much of and luck. It does. Thank best

Bonnie Brooks

you. Thank

Bonnie Brooks

faster. say goods and Molly's already one the long. by say, is working she's I bringing Company, I When mean we times. to was, Molly lead we And what the way, diligently would time shortening lead exceptionally aren't Roxanne, in our joined And and the strengths don't of that on

to etc., So the some are are of yes, in certainly time planning from overall. Company the as the Chico's much as shorten things in we lead artisanal,

Operator

for question-and-answer I'd Brooks you. back And the closing and ladies Thank like our concludes gentlemen, to conference over turn Bonnie this any remarks. session. to

Bonnie Brooks

track bring and records and quickly necessary the forward talent Thank to Rocco. disciplines. conclusion, you very changes proven make in much, to are priorities to we In businesses, with moving to

marketing expectations competitive and our building the of raising will that we are teams compelling are have and brands selling, product, in We advantages.

spring customers collections we back having customers gain new those and look this most changes. and that the and confident impactful continual fall in improvements and forward lost attract the can to summer We're

are product also focused to corporate organization culture our evolving obsessed become a We and on growth. customer

We're much questions excited expect we our all your for the us of that value of you and about the deliver. future for plan and you And today. to thank all joining very creation shareholder

Operator

attending and Thank today's Today's now presentation. you we you. for has all conference thank concluded

disconnect and now your may lines wonderful have a day. You

Chico's Fas (CHS) 28 Aug 192019 Q2 Earnings call transcript