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FORT MYERS — Women's retailer Chico's FAS says increased promotions ate into profits as consumer traffic and spending in its stores fell in the quarter ending Aug. 3.
Chico's says profits fell 18.4% to $43.6 million in the second quarter on net sales of $649.5 million compared with the same quarter one year ago. Sales rose 1.2% in the quarter as the company added 112 new stores.
But the company says sales at stores opened one year or longer fell 2.6% because of fewer transactions and lower average dollar sales in the second quarter compared with the same quarter in 2012. Profit margins fell 1.6 percentage points as the company discounted merchandise to boost sales.
Chico's operates 1,427 stores in the U.S. under the brands Chico's, White House | Black Market, Soma Intimates and Boston Proper.
Chico's shares closed at $15.33 on Tuesday (symbol: CHS) but were down in pre-market trading early Wednesday. The shares have traded as high as $19.95 in the past year.
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