Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Chico's FAS Second Quarter 2023 Conference Call and Webcast. All participants will be in listen-only mode. Please note that this call is being recorded. I would now like to turn the call over to the company's Head of Investor Relations, Julie MacMedan. Ms. ahead. go please MacMedan,

Julie MacMedan

welcome and Chico's webcast. and XXXX second conference call to morning, FAS the quarter Good

on page. For which our found statements judgments at today's Releases and on of our regarding speak our Investor reference, earnings assumptions, our date. website only www.chicosfas.com release our current projections under as plans, include about comments industry, will Today's can expectations, be the forward-looking Relations estimates, Press and business

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

A is posted Certain today's on non-GAAP non-GAAP call. Relations Investor on earnings presentation to may our page. schedule be measures this Chico's FAS in GAAP reconciliation the morning referenced included

will turn the Molly? CEO Langenstein. Molly I to over President, and our call Now

Molly Langenstein

Thank and increase second Black improvement of sequential House sales Soma, we X.X% of last at at income everyone. were consistent with earnings a net outlook another We quarter our quarter the a at you, year-over-year with Chico's, and in quarter modest Total on outlook. second performance, year. of also basis, On year-over-year over of strong in delivered and a XX.X% growth Julie, Market. sales good White quarter morning, line top operating a our last delivered decline

market innovative average increased. spend we to to buy healthy, products. attracted and brands, units three continue and intimates average new customers dressing Soma share. retail new We apparel customers both unit expanded remain our all transaction at For Chico's as gained dollar head-to-toe and responded per sales customers company Total and and full-price

operating $X.XX diluted income performance was earnings the margin Let driven We delivered of for gross of management. by me provide This quarter. share expense adjusted solid and per some highlights continued X.X%. and

brand sales increase diverse a delivered total two-year $XXX comparable sales of portfolio and million Our of XX.X%. stacked

as In just XXXX. fact, we ninth by fastest-growing in the recognized retailer were NRF

This comparable versus comparable and in four Soma’s customer, point an innovation over AUR, XXX sequential second growth improvement sales consecutive and quarter. X.X% down increase last a year-over-year. the per quarters last year-over-year marked profitability. year's discipline sales and were spend gross margin, basis drove Product

XX% quarter, and and last New a dressing. point which comparable over casual outfits. panties were continued basis. House a product sleepwear on quarter and on basis X.X% focused offerings to Customers unlined Chico's continue respond two-year has also respond and styles XX% up stacked to gained Chico's into Black last to continued fell XXX the our in Market August. innovation and complete momentum X.X%, and innovation new bras, a fabric a remain outperform focused sales fashion Customers White on year. and strapless along comparable improvement stacked dressy posted to head-to-toe two-year offering with to growth. decline to from with continued elevated sales sales our

inventory last due to quarter, levels fashion demand. As we mentioned high our were depleted

demand quarter enter our more change. we drive as season, inventory second trend transition and The half levels line fall quarter back a the in was are a with and should

Chico's $XXX,XXX. Sircana, customers over of share with household share Market take to market XX-plus continued during quarter. took and Black White brands for House the Our According to income

$XXX,XXX. and share Soma customers household substantially with with outpaced income the market over gained XX-plus

and pipeline strategic valuable loyalty more to programs drive product marketing continue customers to innovative our Our brands.

health up, and of and spend the customer the each and our long-term quality months, total strength Over indicating customer the per prior demonstrating brand count, were XX of file. multichannel count, opportunity and customer customer

and products, elevated fashion, on focused and more pricing. are rather value customers Our newness than

down XX% new down began inventory inventory inventory total the with We with ending X.X%, to quarter the trend-right fall responding total further fresh up inventory $XX year. second the see product the our inventory and We with balance XX% $XXX cash in debt. sheet, positioned the down fall and liquidity August. $XXX our versus half season on-hand million customers ended strengthened entering XX% quarter of in of We appropriately million We spring summer of million with last only year. and and with

you Let each of strategic our update brief on me a give four pillars.

brands very three in our best digital work through robust we stores, our long-term customer-led connecting and customers to drive engagement, profitable with platforms; the growth. experiences, All three sales propel with are First, each and of social. tandem customers provide

brand. stylists are our community their loyalty our stores sales products are Stores customers of knowledge Our and to programs. in showcase loyalty. important our impression brand to the driving of product and destinations enthusiasm, share key our experts that our all and first bra is also the and enrolling hub allow often for Digital and offerings

drive social the with growing after Within both store and stylists social traction stylists skilled channels, gaining month. connect growth. digital are customers to for stylists expertly brand Our and month sales the

important to continue year, customers with increases years at and X% is FAS Black White House second years Chico's, brand. new six at White X% grew at Soma. and almost nine at Market XX% our X% almost at long, over Chico's, Soma. customers' customers as the Chico's XX is to each In new We years attract House Market, Black at last This quarter versus tenure

customer base. have an engaged and active We

rolling X% total and X%. customer spend count For up grew customer per period, was the XX-month

on nearly the and multichannel the of overall spend who brands. our demonstrate months. health group XX We customers continue to metrics These than customers. appeal over three single-channel focus more last grew times this growing X% And

Chico's and the dressings, continue driven selective quality solutions. by beautiful quarter, Next, paying solution-oriented higher proportions to obsessed. complete in and and to products, offerings to that our generated casual to Travelers early AUR fashion continue respond like new on-trend that selling moving enhancements forward. and indicates outfits are elevated popular we are innovation our pipeline collection, appreciate Chico's brand year-over-year franchises and to Customers At and and they are value our bottom. brand, fall product are are each and customers bottoms. demonstrating higher Customers of for product assortment leg our our receptive solution shirt in and wider our the responding to largely no-iron like product accessories elevated customers buy in constant

and fall growing season, These White respond categories the sales we and At with UPTs last Customers and AUR ADS, customers rose shapewear. experienced resulted including for be UPT and are even fabrications head-to-toe important the will and the the introduced Market, bras, with to lace early bottoms panties jackets fashion dressing in selling. be also especially innovation continuing higher both Black periods. selling House fall and casual quarter. quarter year-over-year. for in are year-over-year ADS to more strapless season, holiday and in fall will career momentum and to responded in during product Soma, At in Sleepwear we launches, new was stretch newness unlined pleased to the and and key as coordinating quarter strong

gross very head as We be we continue and are inventories with balanced. to Soma fall, on year improving over last into margins appropriately in disciplined promotions

customers our leveraging first, experiences engage We and brands to technology are across channels. and to exceptional deliver digital

Style XX% build points, customer company digital to inspires For Each Connect digital brands. our of solutions represented sales and revenues. across for the the customized app touch our last and XX find including tools, digital total wardrobe months, mobile MyCloset, styling

We to leverage digital continue digital drive base. customer our personalized programs, enhance offer to engagement, grow and experiences and tools our loyalty more customer our multichannel

times is over grew The year utilization MyCloset six conversion last XX% the and average. of site

to In customers addition, the customer experienced grow are brands file year-over-year across unique our expanding brands. We we growth our leveraging customers with X% each over strategically of shared the quarter. in

million downloads. Our apps over have received X

are app and three convert average. Our most times the at site loyal the customers using

enrolled new customers the and majority as and new year the apparel redesigned programs. generate to customers and higher Our one our UPTs in the customer and customers XX% sentiment, AURs drive and are customers our of of of XX% Soma top frequency. ago, rates loyalty enrolling in well. nearly expectations majority are and launched our programs vast revenues shopping the of Nearly These programs redemption continue

We are for conversion should growth. follow digital tailwinds others site Black experience in websites, replatforming the House Improvements each to with after. of beginning generate future fall, and with our Market this White soon

We continue marketing, search, and to and us allowing attribution dollars. investments management to order better in digital target personalization make our marketing

upper delivering healthy of inventory, strategies continue our In efficiencies and a strong we marketing estate to growth. real investing and to to in sales, more strive funnel And on operationally fuel expenses new and in line. bottom managing continually customer drive operational addition, And excellent, diligently areas. be we reduce sourcing, flow and cash logistics, work expenses cost are to lastly, we focusing our generating

on you to Now Chief I'll David David? Officer, our performance. Oliver, update turn call Financial financial over to the

David M. Oliver

and Thank everyone. you, Molly good morning,

line adjusted discuss and numbers. reminder, today I gross profitable with certain numbers overall a We another non-GAAP delivered management. top margin disciplined and quarter expense As performance will are strong

also cash while our strong in long-term We growth invest generated strategies. continuing free to flow

we quarter. quarter, second last had of the $X.XX $X.XX generated diluted in year's compared adjusted to For EPS

increase lead marking top and in for increase decreased down on sequential of performance nearly basis, posting a X.X% improvement. quarter a of our comparable X.X% performer basis. dollar XX% the brand, sales Comparable brand's sales of By per on XX.X%. XX.X% last stacked a at decrease year both Market, X% Soma sales This outlook were comparable of Black trend $XXX by decline growth and a on consecutive average increased, the White sale on is Chico's and million down count. the of transactions increase Total a comparable last two-year units stacked representing from net a on X.X% House basis. top a sales offset two-year year, fourth and was X.X% and with quarter Overall, of a consistent was transaction X.X%

XX.X% of normalized totaled sales indicative current normalized healthy, of or compared year's is and of compared markdowns. expenses to outlook XX% inventory SG&A the year. margin high million our or margin of Gross year XX.X% rate to XX.X%. million in flow $XXX last rate steady prior $XXX exceeded The

marketing in lean net income to and investment or indicative and to consolidated growth, deleverage our growth. three SG&A store or areas contributed of support million of in our sales, we will rate generate We primarily productivity, to are strategically customer support of and store the of disciplined of ongoing million managing current line sales. payroll All expenses, ability for year strategic while EBITDA in $XX.X growth. flow top investing quarter function remain thoughtful plan our The of strong XX.X% like We $XX.X a and brands generated to and X.X% operating cash sales. was

our to balance turn sheet. me let Now

total Our us excess return liquidity and of quarter manage cash flow remained providing and make with capacity total multiyear liquidity, the on position, million committed cash with which business, a supply shareholders. only with propel in $XX to million, that operating less million quarter credit to on basis strong flexibility the $XXX our On-hand ended growth, includes facility XXX further to of primarily investments very inventory to chain end, and of X.X compared cash a decline lower inventories. $XXX to cash normalized resulted reflects trailing debt, were XX-month last down ratio The totaled $XXX inventories year. million million times. in-transit X.X%. debt-to-EBITDA XX% conditions significantly our At return than We was

of real to we XX shift outperforming let's continually of boutiques, This upgrade aggregate optimize to we focus well year, store profitability working going remainder the fleet growth estate. meaningfully which We Chico's is in Now are incremental deliver completed portfolio. the believe the nearly forward base. positioned our and and to our the have our are

We and to XX actively Soma and the quarters stores closed for digital to quarter right For renewed the favorable in fourth expect sales Soma, the this a to and and additional We comparable the ended with half have underperforming first negotiate develop. in accretive of desirable should due net total outperform more second fall opened more of been new third In financial strengthened year last to be to of our Closing boutiques. been year. are season. the locations we this longer-term provide able P&L XX mostly a terms a aggregate, X,XXX locations. has with and three stores boost to year, locations continue our looking open halo leases the we and the should in stores opportunities position,

in flat XX%. total Now provide first now top range in single-digit planning year. updated sales revenues performance, half fiscal are XXXX outlook XX% up fiscal On we our net fiscal sales XX% for growth the to This our our accounting let compared and last would of increase be XXXX. XXXX to for imply to for of two-year company me low to

quarter second seeing of trends over half expect the as respond second year, to the fresh improving are assortments. each our of for we fall the brands For we our customers

House expect quarter be Market, trends will The period a will we transition continue but to Black rebound. third for quarter White fourth

remain long-term to expenses expect as will We strong growth invest manage continue flow plan. to we and cash in our

We many years our will that in also investments conversion, for to all prudent drive customer will channels and revenues growth business make traffic, across come.

fiscal planned inclusive are Our between to to $XX for XXXX $XX capital expenditures total million, investment. of cloud-based million expected

flow continue position our to EBITDA and we strengthen. expect financial our cash As very remains to strong,

In investments strategic cash addition navigate allow macro environment. funding reducing to us flow and debt, to will the

tax to XX.X% for So approximately in to expect of $XXX to effective margin total and rate in Gross XX% of the EPS $X.XX the XX% we million XX.X% SG&A rate rate XX.X% diluted quarter, $X.XX. sales $XXX third million. range, an a of range, to

$X.XXX now expect XX.X% range, sales the range effective gross EPS XX% $X.XX rate margin in tax XX.X% SG&A to to of to in rate the rate which the and we XX% billion consists total For year, $X.XX. $X.XXX XX.X% weeks, XX approximately to of billion, diluted of an full of

Looking positioned adjust to ahead, green to we react seeing about shoots are are the ever-changing this are in we environment. and August well to optimistic

what always, can sheet, balance focused our expenses. control, assortments, inventory we on we As controlling and are

bottom on progress make to and stores top to continue long-term and We in line investments technology, initiatives and key our deliver growth. strategic digital,

over Now Operator. the I'll back turn call the to operator.

Operator

Telsey question from [Operator go comes Instructions]. Telsey Today's Group. Please ahead. first Dana at

Dana Telsey

mean freight, change, takes for prepared the versus everyone. by on back gross brand, whether quarter quarter changed can the as rate the by bit on quarter what as it's regarding you exit talk on seeing? And Hi, could the Thank about material and what whether what you brand it's go mentioned for that, the we could and fourth positioning into of through year? just of the good that Molly, inventory morning you're half the raw how the the a little costs, expand puts are you you trend third, and margin, of lastly, second second you.

Molly Langenstein

quarter back strong and attracted which our the enter What Thank of we I share. of inventory to another healthy total We quarter entered back of brand In Full is inventory down we each sales fall and ended positioned new momentum regards XX%, as down have you, Dana. as We performance. customers of the deliver we did inventory, complexity and compelling gained forward half believe we appropriately were was our the as with the of half. on-hand X.X%, sales is year. market the is fall price the our we on product. a call inventory terms mentioned or fresh in enter

year So were summer inventories up QX, XX% our and at XX%. our ended and for last fresh fall down inventories spring new

for half quarter. no quarter. we the new have back are inventories we So sales our healthy very outlook our of to in a of in and as terms price the planned regular liability enter third position terms believe inventory fuel that We

very I the shift in into When length responded What bottoms, in that in made positioned quickly, proportions quarter and the see this and well wider the in tops, shorter proportion shifted the jackets in buying terms back to. Chico's I in categories look started investments and sportswear that is in the more where our very at third is she quarter, half. customer we in leg feel to it of the we second by particular, brand,

casual to that That we trend same proportion in in see bodes change we're shift. where terms in our and buying are same inventories pants again year. And So the half seeing back White was we're House move very jackets moving well of encouraged by of we that silhouette proportion back that in the into fabrication early of where which to in and is also terms what August. as she shift, started particular, casual matching

that in been of and continuing of terms the encouraged has the that panties, quarter. we're see innovation and we're Soma trend And fourth bras well July very bodes shift for into and which in seeing change in to pajamas, later the the August by in on started selling terms we and

categories are and the in positioned So we that David? trending well our of also in complexity of feel freshness. terms inventory the

David M. Oliver

Dana. With the side, related also to dividends points related supply in to quarter, to had XX stores puts included the by occupancy had the thanks raw XX takes their basis which our and in the pluses and from points investments of terms, lower partially future. But we net really lease we on basis second respect minuses -- extend plus reflected on freight. XX pay the Sure, higher margin corporate the gross basis chain points with associated savings materials costs offset in and that will a

was semiannual is adjust In part for the recaptured. did now gross low and the our a half some tremendous looking and flat your deleverage, balance sale there performance, the in one. for at and outlook our our really moderate made this normalized XX along margin believe line those path to of have year, to single-digit SG&A strategy basis growth ahead and second right points top clear addition, year, question, the contraction, first is reflect seeing operating we we the are we And the House from results. the are with for is White But strides of outlook our we but

Dana Telsey

Thank you.

Operator

today ahead. comes Lick Please Thank from B. Riley Financial. you. And question our next Jeffrey with go

Jeffrey Lick

there, in how were exited you know talk outlet of know the you Could an about And how Could progressed customers. reactivation update you QX? you give Molly, softness QX, an curious that also, I -- some give I there encouraged guys. then the update you pretty was on trends, Hi that stands? as could

Molly Langenstein

thank you, Jeff. Absolutely,

see yes, outlet the business, stores, centers rebound the and in in but did softness footfall in outlet, in business, quarter. digital conversion still in a the positive definitely a good particular, penetration and that of outlet see that's trend outlet We second much smaller was did terms some we and encouraged the the In in change.

In terms number. will pandemic. continue into the is of in the seeing and a lapsed customers mostly customers marketing since health of because existing we're the new upper of continuing reactivating what our fuel been sure That and in and time and was really that fueling to new lot the active shifted the long-term the the make of fire. change reactivation strong of a customers funnel loyalty to is We've we're that still complexity to investments consumers, over reactivated we've

So we're responses we're customers be customer tenure very all brands continuing to for time. newness by of get growth able what able drive encouraged the that new three with a new us in in they once long a to new with us seeing to for customer, being to with and to stay because up consumers stay be we

Jeffrey Lick

you surface, I'm Could some you then were -- that different you Great. internal curious the evolved QX in stats what and optimistic on how pretty were well. as underneath with Soma seeing, just

Molly Langenstein

One, Yes. the products. In we've this the bodes business very responding Soma, customer we margin. tremendous the the area controlled strategy terms the market growth significant managing for and of been the are last well very been fact We've year in how is and we how there a our in in to is for took encouraged. share that

in in panties our and us and as is big So bras season see apparel second and categories enter we that continue into front sleepwear of in QX. a we had to we in resurgence the and quarter strength

but in balance balanced the that a only have not very we what promotion also margin. healthy terms a return So customers very terms of also of issue will we and sales, in respond position feel

Jeffrey Lick

get curious And lastly, point I'm of one quick, just then just to view. your

the a than are relative relative any experience? view will I'm curious more typical to you drive for relative a your year, from fashion do of -- to this just half that year, half. business wondering, to You've just while there business your the trends, transition second I'm been with see there this point trends or are others, any less to there at first how

Molly Langenstein

very for Any good Yes. change, you proportion is time have always a business. it

time and we long in period, last So started haven't after into our assortment. time. because but consumers We the good into to very, tested have our of a strong response half in trickle QX, we bottoms the got leg these in from a very bought categories legs that assortments consumers wide QX we just put latter year wider went it

we drives other So in every proportion are purchase new wide have to that that fabrications that many change. leg and

proportion she neck pair shorter She different a needs more T-shirt. smaller top, shirt She in shoes, from to less needs a she a a controlled be and ear. her needs needs away more volume volume a to of the shifts and a jewelry terms or of So more the jacket proportion.

of stores as all reflect us trend very that we go So the assortments today, is if the the you And back the a compelling when our that half see into into And encouraged there's of year. you'll momentum enter change. that. gives

Jeffrey Lick

Awesome, congratulations up. look catching forward to and

Molly Langenstein

Jeff. Thanks

Operator

Retail go Thank you. ahead. Please And comes Marni Tracker. from today question with our next Shapiro

Marni Shapiro

congratulations. guys, season. Hey how I'm beautiful Chico's looks blown away fall the start to by

So that. on congratulations

things. just on wouldn't Soma bit couple diving White a a you If and of mind in little on House

touched You've on little a bit Soma.

Molly, bill then you in think, in was back resurgence back the should second in dress year. of you assuming a as for half bodes half a I'm just that just business said we the quarter, little in of And year. of an that you goes that saw and the the dig back year well very issue holiday? Can of bit expect White half to House I the what the last the into bit so sleep that at

does curious the back if playing balance still include to the on playing today, are half dresses? there I'm catch that catch comfortable what feel like with of up the year, fashion know we or as assortments there, the looks you're So I you still the up you head

Molly Langenstein

not our We different as we Marni, more I continue, some also sleepwear of Soma, the have not you'll for some in that back expression I the and diversified half your enter tested and good about for we very get to with as the enter year, start feel anxious into see business. brand feel print a which color and balance to Thank before. we but approach. view other about also [indiscernible] of only diversified very is you of of of fabrications the fabrications so QX. fabrication that had It good strong the expression consumers the franchise strong point sort

about as bra think franchise assortment, So diversified well particular, very home, balance assortment, different between expanded you a there Votify, to added a finding a And our a just the then you're have which I in there's a it bras in to business between franchise online. strapless, bras, in so bring have a years good bras in profile I actually franchise. many of business. in that also assortment. happening feel push-up We've we And couldn't and very the more there's panty thong sizes. new thong natural proportion have robust very shape, then to today our we all and find Two we balanced ago, changes

for back the the feel of for the position we the year and balance very strong about half Soma. So

in As a good relates in Market, White our terms to it position are House very suiting. Black we of

size our in can we the jackets. you and and your in now and be find have So that will you assortment assured pants our terms come of

great one each proven position. stock is fabrications proven our and in So silhouettes of a

We the are with fashion that now complementing assortment.

back of half. at August, ratio us be give right we at meaning I end wanted at that that to will We are the into continue the the now and dividends think we as now, go to

House, in softened. to to in it continue in it dress expect specifically the and QX, we Chico's dresses, business overall and relates it As White

our So moved ourselves putting together. not in but only to dresses, proportion how dressing sportswear. the in And quickly this new dresses, head-to-toe that dressy you see was consumer casual she and

that fall. don't the back move issues half. and for on have she's the that move the we we bet have And carryover thing looking we as is So inventory we sportswear, into inventory good into sportswear as she

Marni Shapiro

really out, great and curious you've It as full-line metrics, more versus or follow-up like outlets than year shoppers sale or all later is wait stores it I now? seeing different fashion your if just any to across you in they're right seeing purchasing. called is price change is do this. one on are choose seems you're sensitive in at you the purchase then customer the she sensitive all your can healthy That’s I'm on just

Molly Langenstein

way loyalty frequency. you overwhelmed right consistency consumers, And we little say the of she's is in look quite of her across honestly, the how our at you consistent behavior four by responding look I'd comes now, she a are that seeing amazing in when our tiers frequency. back how in to in she most and terms our often

line And fact year So people doing to these job for new the the loyalty be are rate that us to push store redemption big customers a are we into and is of expectations believe was Soma them enroll one-year-old, to program, in a all our these and into continuing now customer our fantastic nearly to and top launched customers sentiment, programs programs, addition program program in able of a to apparel XX% get ago, our of of well. frequency. into new the the new enrolling new that XX% because she our as enrolled had

us seeing a important from to put consumer is conversion most look I stores we're being what is in how happening would standpoint the that new because Marni, So is that this that, proportion able at she consumer, together do when ourselves she able put she's and and conversion help that so be that head-to-toe. to someone to together a helped is has by point it easiest to the

Marni Shapiro

thanks Great, guys.

Molly Langenstein

you Marni. Thank

Operator

next And go ahead. Kloppenburg Please our comes today JJK. Thank from with you. Janet question

Janet Kloppenburg

back well? not, about little House and hear look your the did on so you going hear the half, of love intimates could challenging, the well, it the Molly. repositioning to Can learn in of I'd through that I more you environment like Thank everybody. maybe second talk White if like expectations been are it's late, does into a that? the what signed you those as so talk bit that about at will bit wanted meet back half a doing quarter And the move I little hear you guys I me Black Market, Hi, what's because you. we as I in business metrics on to say can also continue sounds some for the year, promotional about it pretty but

Molly Langenstein

Great, you thank Janet.

from consumer to two-year blouses coordinating did be able down that really that our see able that of outpace improve and the stores Black in sequentially some QX terms with sales sure stack. of relates that the put a back House that to digital, put together White of and sweaters in of with the new or X% it pieces, and to was QX top make to to Market, suiting in to sell As leaving and put on to House We back being did being XX.X% White terms see knits whether we goes responding she's decrease and X.X% together. in or be had able yarns they versus

levels in heavy to that would meaning as inventory in have ratio between Our that basics at are be August. like basics, in in and a we percentage been now proportion fashion and we

seeing White we're into in selling the August of the are that House pleased positioned we well fashion fall with So as we year brand. we in in are move back the and the early half

category strategic one QX, We T-shirt the able that able the business. we look business. be and they to want to well, markdowns do We manage of items for continue to was planned We year POS into versus we are back with product. continue We promotions, at don't to planned be our the promotionality brand where our the we have go the categories. across did and to whether to consumers, it half knit terms days for at a do In the we or environment, but that -- we'll have into that don't as that of and to need back entire overall be promoted hard not in the promotional business believe believe time.

making gains that sure of we've from believe in the second that macro so offering is terms a best and in our assortment Circana and that quarter. market regularly having So have continually are on our we program category through intimate consumer talking promotional remaining and in seeing particularly we're specifically, the seeing her -- that demand a less the assortment we had standpoint little share less and balanced right the quarter-over-quarter and we from the data and the is in a loyalty right approach, today to [ph] is what are

continue to So that's how going business. the Soma intimate to manage we're

Janet Kloppenburg

was trend Would you there dress trend. and lot I after the and up talk but about on to heard for where you House say silhouettes is there casual a that of White catch-up sort work? overall Chico's a this that towards a back

Molly Langenstein

casual happening. proportional No. change seeing the as really dressy. I'm that's it not It's or defined

have embellished for up and well as So career she's disproportion that buying dimensions. change both we're as dress things three seeing items

seeing shift, not casual I'm which in just It's Janet, a really it bucket proportion of is career. that So or a seeing, we're great.

Janet Kloppenburg

up give do know dress sort last of up that we think you could year year? got a how of balance last because historical that compared casual maybe you So me this to on dress you and to strong do outlook very that see year it

Molly Langenstein

Yes.

woman wardrobe. a today show I I have And think to the our how think here's fantastic be marketing multi in of be a that booty. pieces wide ability her duty. in great most looks able important a try and able leg be all with new to wants here's And expression that versatility it we to is the to to

item, a items fantastic item wear is strappy translate and can looks or me versatility but occasions. with it across. how And you to many is that wearing that how the multiple like single-use then what to here's worn be not a And important the most consumers. that it's a that with heel get can across it can sneaker same Here's one into

to you So heels. if you with up, accessories or it can dress want

to can do accessories you changing shoes. or it your thing some taking off same address by down, want the you If

care be to that So occasions. sure we're taking make wearing all of her to of focus able that's our

Janet Kloppenburg

Thanks great. much. Okay, so

Molly Langenstein

you Thank Janet.

Operator

Thank you. remarks. will This I concludes closing our Molly to over question-and-answer the session. call turn for now Langenstein back

Molly Langenstein

technology Thank teams their for which you. of to digital continuing digital for our I also to drive our stores like and work our I'd to experiences. sites, us incredible our thank and position for team each replatform as tenacity close, outstanding loyalty to will memorable thank And and dedication before team they I long-term create want growth.

on and We deliver our a in value. strengthening to quarter Thank in we interest financial see change brand are and positioned enhancing our generate and achieving the with shareholder third for performance, our to flow. and balance during give for targets call. believe strategy, further time. your strong fall operating speaking us continue our increasing long-term our sheet, results confidence are cash our you to forward look you conference again and focus our pillars beginning steadfast trend and season strategic our business, meaningful We well We four

Operator

We today's presentation. Thank for you. call. you This thank concludes attending conference all today's

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

Chico's Fas (CHS) 29 Aug 232023 Q2 Earnings call transcript