Chico's reports Q3 net loss of 55.9 million dollars

For the third quarter, Chico’s FAS, Inc. reported a net loss of 55.9 million dollars or 48 cents loss per diluted share. The company said, for the thirty-nine weeks, the company reported a net loss of 281 million dollars or 2.43 dollars loss per diluted share compared to a net loss of 8.4 million dollars or 7 cents loss per diluted share, for the thirty-nine weeks ended November 2, 2019.

Commenting on the company’s performance, Molly Langenstein, Chief Executive Officer and President, Chico’s FAS said in a statement: “Eighteen months ago, we prioritized digital as the primary growth engine for all three of our brands, making major strategic shifts and investments to pivot us to a digital-first company. We are pleased that we achieved another quarter of sequential performance improvement, with total sales increasing by 14.8 percent, driven by strong digital performance and a rebound in store sales, and gross margin rate rising more than 700 basis points.”

For the third quarter, net sales were 351.4 million dollars, an improvement of 14.8 percent from the second quarter, reflecting robust digital performance and rebounding store revenues. The company added that sales decreased approximately 27.5 percent from last year’s third quarter, reflecting a decline in store sales as well as the impact of 63 net permanent store closures since last year’s third quarter, partially offset by double-digit growth in digital sales. Third quarter digital sales grew by double digits for the second quarter in a row. Year-over-year digital sales grew in all three brands, and Soma led the way with 67 percent growth compared to the thirteen weeks ended November 2, 2019.

Picture:Chico's press room