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FORT MYERS — Women's apparel retailer Chico's FAS suffered a decline in sales and a net loss in the fourth quarter compared with the same quarter one year ago.
In the fourth quarter ending Jan. 30, Chico's reported a net loss of $21.1 million on sales of $627.4 million. That compares with a net loss of $31.8 million on sales of $656.9 million in the same quarter one year ago.
“While we are disappointed with our fourth-quarter sales, we are pleased that our responsiveness and disciplined inventory management in this intensely promotional environment allowed us to achieve positive gross margin leverage and a slight decline in total inventories over last year,” says Shelley Broader, Chico's president and CEO, in a statement.
Sales at stores opened longer than one year, an important retail metric, fell 3.2% in the quarter. The company's White House | Black Market stores suffered the biggest setback, with same-store sales down 7.4%.
In addition, Chico's took a $14.6 million restructuring charge on the sale of Boston Proper and costs related to expenses on hiring Broader as the company's new CEO.
In the statement, Chico's says the company is anticipating flat to slightly negative comparable sales but “opportunity for positive growth” in the second half of 2016. The company says it plans to open 25 new stores close 50 existing stores.
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