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Although total sales increased to $436 million from $403 million, same store sales fell once again for Chico's FAS Inc. (NYSE: CHS), the once high flying retailer. Comps sales dropped 5.6% for the quarter ending in July and comps for August continued to decline in the mid-single digit range. Analyst had expected comp sales to flatten beginning in August, so the decline is not a good sign.Chico's found a great niche selling to aging boomers who wanted to buy high quality and higher-end fashion clothing. At times, its was cult-like. However, the flagship Chico's stores have begun to seriously struggle the past year, finding it near impossible to grow comp sales.
Last night, the retailer reported earnings of $0.22 per share versus a consensus estimate of $0.26. Also, its newer WhiteHouse/BlackMarket concept is also struggling with negative comp sales, which are coming in much worse than expected.
All told, this is one struggling retailer to avoid bottom fishing in, at least for now.
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Reader Comments (Page 1 of 1)
8-30-2007 @ 12:39PM
kim said...
These stores are in trouble! They hire only white women and these women will not help minority customers. They don't even say " How can I help you, or look at them." I have been to almost every store in the midwest, and they all act the same. Shame!
10-02-2007 @ 8:42PM
a. bruck said...
I wonder if Chico's decline is related to its catalogs. I have been shopping at Chico's for years; it was a shop where I always knew I would find clothing that fit comfortably and that was stylish. But I have stopped shopping there because I am tired of catalogs that are full of 5'10" thin women, many many of whom are blond - women who look like these models do not shop in Chico's - most look like me - 50 and 60 year old women looking for stylish clothes, 5'4" or so, and round - why aren't we in that catalogue, since we are the ones buying the clothes - wake up Chico's.