US: Chico's Q3 hit by discounting and acquisition costs
- Net income down 8%to $26.5m
- Sales up 11.5% to $538.5m
US women's wear company Chico's FAS said that third-quarter profits were hit by rising costs, higher discounting levels and costs relating to its acquisition of Boston Proper.
The company, which operates the Chico's, Soma, White House Black Market and Boston Proper brands, announced yesterday that net income for the quarter ended 29 October fell 8% to US$26.5m. Excluding costs relating to the acquisition and integration of Boston Proper, net income would have risen 4.2% to $30m.
Sales increased 11.5% to $538.5m, with comparable sales up 3.7%. It said that the sales rises reflected increases in average dollar sales and transaction count.
Gross margin fell 100 basis points to 56%, which the company attributed to higher discounting in the Chico's brand as a result of a "soft sales environment". This was partially offset by higher margins at White House Black Market and Soma Intimates brands, which recorded increased full-price selling and effective promotional activities.
Women's wear retailer Chico's FAS posted double-digit increases in first quarter profit and revenues, boosted by a 9.6% rise in comparable store sales....
Featured reports from just-style's research store this week include a look at the textile and clothing industry in Brazil, a company profile on Pumpkin Patch and a report about specialist apparel reta...
Women's wear retailer Chico's FAS Inc has booked a 21% jump in fourth quarter profit, thanks to higher sales across all its stores and the acquisition of online retailer Boston Proper in September....
- Steps to piloting living wage in garment factories
- How to ensure sustainability is more than a slogan
- US apparel retailers' November 2016 sales roundup
- Why do modern robotics elude sportswear makers?
- Trump blows the case for Brexit out of the water
- Esquel efficiency drive continues to boost brands
- Taiwan textile maker investing in first US plant
- US Q3 in brief – Sears, Vince Holding, Genesco
- Myanmar garment industry "lacking labour rights"
- Outdoor apparel sector set for double-digit growth