- Prachi Singh |
For its first quarter, Chico’s FAS, Inc. recorded net loss of 178.3 million dollars or 1.55 dollars loss per diluted share, compared to net income of 2 million dollars or 2 cents earnings per diluted share, for last year’s first quarter. The company said in a statement that net sales were 280.3 million dollars, down approximately 45.9 percent as a result of our closed stores during the second half of the first quarter, partially offset by stronger digital commerce performance.
Commenting on the results, Bonnie Brooks, Chico’s Chief Executive Officer and President, said: “During the first quarter and now into the second, we have strengthened the company’s liquidity and substantially reduced expenses and cash burn. We are now halfway through the second quarter with an improved financial foundation and focused on accelerating the growth strategies that drove our significant success in the prior two quarters.”
Gross margin for the quarter was negative 11.1 million dollars or 4 percent of net sales, compared to 190.8 million dollars or 36.9 percent of net sales, in last year’s first quarter.
“As we look to the second quarter and the balance of 2020, we believe we will be competitively stronger because of the measures we’ve taken to liquidate our prior season inventory and remove it from our stores and distribution centers. We are encouraged by our strong store re-openings and the accelerated demand in our digital channels, which demonstrate our customers’ loyalty to our brands,” added Molly Langenstein, Chief Executive Officer and President Elect, Chico’s.
Picture:Chico's media centre