FORT MYERS — Going into the third year of a comprehensive turnaround strategy, executives at women’s retailer Chico’s FAS say the firm is poised to post some significant growth reports.
The list includes hitting at least $2.5 billion in revenue by 2025 — which would be up 38.8% from the $1.8 billion figure it posted in its most recent fiscal year.
"We have aggressively pursued our turnaround strategy which began in 2019,” Chico's FAS President and CEO Molly Langenstein said in March 25 press release, issued for the Fort Myers-based company’s Virtual Investor Day. “Today, we are well ahead of our plan and positioned to build on our momentum and further accelerate our growth. We have three powerful brands — Chico's, White House Black Market and Soma — each growing faster than the market average and with tremendous future market share opportunities.”
“Our unique brands, paired with our proven business model, experienced leadership team, values-centered culture and strong balance sheet are a winning formula for driving long-term shareholder value," she adds.
In addition to the $2.5 billion goal, the company’s three-year financial targets, pegged for Feb. 1, 2025, include:
- Digital revenues in excess of $1.0 billion;
- Gross margin rate of 40%;
- Operating margin of 7.5%;
- Earnings per share growth representing a compound annual growth rate of 15+% from fiscal 2021; and
- Some $400 million of cumulative cash flow from operations in the next three years.
Langenstein adds that four strategic pillars have defined the company since the turnaround began in 2019. The list includes being customer led, product-obsessed, digital-first and operationally-excellent.
As of Jan. 29, Chico’s operated 1,266 stores in the U.S. and sold merchandise through 59 international franchise locations in Mexico and two domestic franchise airport locations.