US: Chico's Q4 profit increases 25.6%
- Q4 profit increased 25.6% to $31.5m
- Sales rose 14.5% to $651.9m
- Gross margin improved 90 basis points to 53.2%
Women's wear retailer Chico's has seen its fourth-quarter net profit increase after the company sold more products at full-price and managed inventory levels.
Net income increased 25.6% to US$31.5m for the quarter ended 2 February, compared to $25.1m in the same period last year. Excluding costs related to the acquisition of catalogue and online clothing seller Boston Proper, net income reached $32.7m, up 29.8% from $25.2m the year before.
Sales rose 14.5% to $651.9m from $569.2m in the same period of the previous year, while comparable sales grew 3.7%. The company attributed the to a positive response to its fashion assortments and effective marketing plans.
Comparable sales at Chico's/Soma Intimates brands and White House|Black Market increased 2.3% and 6.3% respectively.
Gross margin improved 90 basis points to 53.2% as the company sold more full-priced products and had effective inventory management.
Over the full year, net income jumped 27.9% to $180.2m against $140.9m the prior year. Sales were up 17% to $2.58bn from $2.20bn last year.
Looking ahead, the company said its expects its expansion into Canada, its omni-channel capabilities and the opening of its first Boston Proper stores to fuel growth.
Women's wear retailer Chico's has reported an 18.4% decline in second quarter net profit, after increased promotional activity weighed on sales at stores open for at least a year....
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