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Fort Myers-based women's retailer Chico's FAS most recent quarterly results weren't exactly rosy, but the company tossed a bone to investors while promising better days ahead.
On Nov. 26, the same day that Chico's reported a net loss of nearly $29 million, the company told investors it would boost its dividend by 36%. For years, debt-free Chico's has been mostly sitting on its cash. It most recently reported nearly $250 million in cash and securities on its balance sheet.
In 2011, Chico's used some of its cash hoard to acquire Boston Proper, an online catalog merchant of women's clothing. In the most recent quarter, however, Chico's says it took a $72.5 million noncash charge for goodwill and trade-name impairments. The company says sales at Boston Proper were the result of recent sales declines.
Behind the scenes, it's likely that Blue Harbour Group of Greenwich, Conn., is agitating for change such as a boost in the quarterly dividend. The private-equity firm, known for seeking strategic and financial changes in companies it invests in, recently took a 5.6% stake in the shares of Chico's.
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