Chico’s FY22 earnings jump, sales up 18.3 percent

Chico's FAS posted net income of 109 million dollars or 88 cents per diluted share for fiscal 2022, an increase of 138 percent over last year, driven by strong comparable sales growth, significant gross margin expansion, and diligent expense control.

For fiscal 2022, Chico's FAS net sales grew 18.3 percent to 2,142 million dollars and comparable sales increased 19.6 percent versus last year, led by the company's apparel brands. Chico's and White House Black Market (WHBM) comparable sales grew 30.8 percent and 25.7 percent, respectively, versus last year.

Commenting on the company’s results, Molly Langenstein, Chico's FAS chief executive officer and president, said: "We achieved strong results across all key financial metrics in fiscal 2022. We delivered strong store and digital sales growth, substantial gross margin expansion and solid expense leverage for the year, which produced outstanding operating income, cash flow and EPS."

Overview of Chico’s financial results

For the fourth quarter, the company reported net income of 7.5 million dollars or 6 cents per diluted share compared to 10.7 million dollars or 9 cents per diluted share, for the same quarter ended January 29, 2022.

For the fourth quarter, net sales were 524.1 million dollars, up 5.6 percent, reflecting a comparable sales increase of 6.1 percent, partially offset by the net impact of store closures and openings since last year's fourth quarter.

For the fourth quarter, gross margin was 182.9 million dollars or 34.9 percent of net sales, an increase of 40 basis points. For fiscal year 2022, gross margin was 838 million dollars or 39.1 percent of net sales, an increase of 240 basis points.

For the fiscal 2023 first quarter the company currently expects consolidated net sales of 535 million dollars to 550 million dollars; gross margin rate as a percent of net sales of 41.3 percent to 41.8 percent; and earnings per diluted share of 26 cents to 30 cents.

For fiscal 2023, the company expects consolidated net sales of 2,220 million dollars to 2,250 million dollars; gross margin rate as a percent of net sales of 39.4 percent to 39.8 percent; and earnings per diluted share of 79 cents to 91 cents.