Chico’s returns to profitability in Q2, sales up 54.2 percent

For the second quarter, Chico’s FAS reported net income of 26.2 million dollars or 21 cents per diluted share compared to a net loss of 46.8 million dollars or 40 cents per diluted share, for last year’s second quarter.

For the twenty-six weeks, the company reported net income of 17.3 million dollars or 14 cents per diluted share compared to a net loss of 225.1 million dollars or 1.95 dollars per diluted share, for the twenty-six weeks ended August 1, 2020.

“Our second quarter earnings performance was the best second quarter Chico’s FAS has posted since 2013, and these results show the incredible progress we continue to make in our turnaround strategy, despite pandemic challenges. Our return to profitability in the quarter was driven by our strategic actions that grew sales, expanded gross margin, and diligently controlled our expenses,” noted Molly Langenstein, Chico’s chief executive officer and president.

Chico’s Q2 sales improve 54.2 percent

For the second quarter, net sales were 472.1 million dollars, up 54.2 percent, which the company said, primarily reflects the impact of temporary store closures or limited hours during last year’s second quarter, partially offset by 29 net permanent store closures since last year’s second quarter.

Total company comparable sales declined 1.6 percent, with Soma improving 38.1 percent and Chico’s and WHBM decreasing 14.3 percent and 5.4 percent, respectively.

Gross margin for the quarter was 181.5 million dollars or 38.4 percent of net sales, compared to 44.8 million dollars or 14.6 percent of net sales, in last year’s second quarter.

Chico’s announces Q3 and full year outlook

For the fiscal 2021 third quarter, the company expects consolidated year-over-year net sales improvement between 18 percent to 22 percent and gross margin rate improvement of 13 to 15 percentage points over last fiscal year.

For fiscal 2021, the company expects consolidated year-over-year net sales improvement between 32 percent to 35 percent and gross margin rate improvement of 20 to 22 percentage points over last fiscal year.