Chico's to cross 2.5 billion revenue target by 2024
At its virtual investor day, Chico's FAS, Inc. set out three-year financial targets. The company said it expects to report total revenues in excess of 2.5 billion dollars by 2024, while digital revenues are expected to cross 1 billion dollars.
The company forecasts gross margin rate of 40 percent, equating to 330 basis points of expansion from fiscal 2021; operating margin of 7.5 percent, a 380 basis point improvement from fiscal 2021; EPS growth representing a CAGR of 15 percent from fiscal 2021; and generation of approximately 400 million dollars of cumulative cash flow from operations in the next three years.
Commenting on the company’s plan, Molly Langenstein, Chico's FAS chief executive officer and president, said: "We have aggressively pursued our turnaround strategy which began in 2019. Today, we are well ahead of our plan and positioned to build on our momentum and further accelerate our growth."
Chico’s affirms Q1 and FY22 outlook
The company is also affirming its previously announced outlook for the fiscal 2022 first quarter and full year.
For the first quarter, the company expects consolidated net sales of 485 million dollars to 500 million dollars; gross margin rate as a percent of net sales of 36.9 percent to 37.7 percent and earnings per diluted share of 7 cents to 11 cents.
For the fiscal 2022, the company expects consolidated net sales of 2,085 million dollars to 2,115 million dollars; gross margin rate as a percent of net sales of 36.7 percent to 37.2 percent; and earnings per diluted share of 40 cents to 50 cents.