US: Strong sales lift Chico's Q4 profit by 21%
- Q4 net income climbed 21% to $25.1m from $20.7m
- Net sales rose 19.8% to $569.2m from $475.0m
- Comparable sales increased 8.7%
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.
The retailer also forecast sales in the year ahead would rise at a mid teens percentage rate to around $2.5bn, with same-store sales growth at a mid-single-digit rate.
But discounting at the Chico's brand is likely to continue to weigh on margins, it said. During the fourth quarter, gross margin rose 17.9% to $297.9m, but dropped 90 basis points as a percentage of net sales, to 52.3%. For fiscal 2012, gross margin rate is seen down by around 50 basis points.
Profit for the fiscal year to 28 January was up 22% to $140.9m, or $0.82 per share, up from $115.4m, or $0.64 per share, the year before. And net sales rose 15.8% to $2.2bn.
- SOURCING: Worldwide change in cost competitiveness
- Gap audits reveal compliance issues in Myanmar
- Water scarcity a challenge to cotton supply chains
- Abercrombie & Fitch to lose logos in fashion focus
- Li & Fung looks to new frontiers for growth
- Adidas to use only Bluesign-approved chemicals
- Accord and Alliance discord "a setback"
- 'Cotton of the Carolinas' grows reshoring efforts
- Myanmar and US to develop labour rights initiative
- Scientists hail first recycled cotton garment
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Wool in the 21st Century: new prospects for a familiar fibre
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- China - ISA Country Report