American firm Chico's FAS posts net sales of $505.1 mn in Q3 FY23

02 Dec '23

2 min read

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Insights

In Q3 FY23, US retailer Chico's FAS reported net sales of $505.1 million, a 2.5 per cent decline from the previous year, mainly due to a 2.7 per cent drop in comparable sales.
Gross profit was $196.4 million, with a lower gross margin attributed to higher occupancy costs and reduced net sales.
The company's diluted EPS was $0.04, adjusted to $0.11.

In the third quarter of fiscal 2023 (Q3 FY23), American fashion retailer Chico's FAS has reported net sales of $505.1 million, showing a slight decline of 2.5 per cent from the previous year's third quarter, which reported $518.3 million. This year-over-year reduction is largely due to a 2.7 per cent decrease in comparable sales, primarily driven by a lower transaction count, although this was somewhat offset by an increase in average dollar sales.

Gross profit for the quarter was $196.4 million, or 38.9 per cent of net sales. This represents a decrease compared to last year's third quarter, which saw a gross profit of $207.4 million, or 40.0 per cent of net sales. The 110-basis-point decrease in gross margin is mainly attributed to higher occupancy costs and a deleverage effect on the back of lower net sales, the company said in a media release.

Chico's FAS reported a diluted earnings per share (EPS) of $0.04 for the quarter. When adjusted, the diluted EPS stands at $0.11. This figure provides insight into the company's profitability on a per-share basis, considering both the reported and adjusted figures.

Additionally, the company's selling, general, and administrative expenses were $178.6 million for the third quarter, which is 35.4 per cent of net sales. This is an increase from the third quarter of the previous year, where these expenses were $175.8 million or 33.9 per cent of net sales. This rise signifies a higher proportion of operating costs relative to the company's net sales.

"We delivered third quarter results in line with our outlook," said Molly Langenstein, Chico's FAS chief executive officer and president. "Our results reflect our team's continued execution on our four strategic pillars of customer led, product obsessed, digital first, and operationally excellent."

Fibre2Fashion News Desk (DP)

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