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Chico’s Q4 loss widens, sales drop 26.7 percent

By Prachi Singh

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Business

For the fourth quarter, Chico’s reported a net loss of 79.1 million dollars or 68 cents loss per diluted share compared to 4.3 million dollars or 4 cents loss per diluted share, for the same quarter last year. For fiscal 2020, the company reported a net loss of 360.1 million dollars or 3.11 dollars loss per diluted share, compared to 12.8 million dollars or 11 cents loss per diluted share, last year.

Commenting on the trading results, Molly Langenstein, Chief Executive Officer and President, Chico’s FAS said: “While sales reflect the challenging environment, we took important actions over the past year to strengthen our financial and operating foundation and position our brands for market share gains. We enter 2021 as a digital-first, customer-led company with the capabilities to support continued improvement, enhanced value creation and a return to growth in the years ahead.”

Fourth quarter net sales were 386.2 million dollars, decrease of 26.7 percent, which, reflects a comparable sales decline of 24.9 percent as well as the impact of 39 net permanent store closures since last year’s fourth quarter, partially offset by double-digit growth in digital sales. Soma’s comparable sales increased 15.2 percent, with digital sales increasing 68.6 percent compared to last year’s fourth quarter.

For fiscal 2020, net sales were 1.3 billion dollars, down 35 percent, reflecting disruptions related to the pandemic, including temporary store closures or stores operating at reduced hours during fiscal 2020, reduced in-store traffic, changing consumer patterns and the impact of 39 net permanent store closures since fiscal 2019, partially offset by double-digit growth in digital sales.

Image: Chico's press room

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