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FORT MYERS — Women's retailer Chico's FAS posted a net loss of $28.5 million in the third quarter after taking a charge related to its acquisition of Boston Proper.
Chico's says it took a $72.5 million noncash charge for goodwill and trade name impairments related to Boston Proper. Chico's acquired Internet women's retailer Boston Proper in September 2011 and has opened stores under that brand name. “These impairment charges were the result of recent sales declines in the Boston Proper catalog business due to the increasingly competitive direct-to-consumer environment and the impact of integration efforts and new initiatives,” the company says in a statement.
Meanwhile, sales at stores opened one year or longer fell 1.4% in the third quarter. The company says that reflected reduced customer traffic and relatively strong sales in the same quarter last year. Total net sales were $655.6 million, a 3% increase over the third quarter of 2012, reflecting the opening of 115 new stores.
Separately, Chico's says it plans to boost its dividend by 36% to 7.5 cents per share. Chico's, which has no debt, reported cash and securities worth nearly $250 million.
Chico's operates 1,470 stores in the U.S. and it recently opened its first stores in Canada, its first international venture. It sells women's clothing through four brands: Chico's, White House | Black Market, Soma Intimates and Boston Proper.
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