Source: Company reports

1Q16 RESULTS

Chico’s FAS reported 1Q16 revenues of $643 million, down 7.8% from 1Q15. The company cited weak traffic across the industry as a factor in the decline. The company’s lingerie brand, Soma, was the only division to report growth this quarter; both Chico’s and White House Black Market saw declines in sales. The company announced plans to cut costs with new initiatives aimed at improving its supply chain, and said it would enhance its marketing efforts and leverage non-merchandise procurement, thus reducing complexity in the company and standardizing processes. The company expects to save $50–$70 million annually through these initiatives. Chico’s FAS expects to see an additional $14 million in annualized savings as a result of its realignment of the marketing and digital commerce functions. Reported EPS was $0.23, representing a 4.5% increase from $0.22 in the year-ago quarter but missing the consensus estimate by $0.09.

2016 OUTLOOK

The company expects to save $15 million in FY16, and expects the remainder of its savings initiatives to be fully implemented during FY17.