Chico’s FAS, an omnichannel specialty retailer of women’s private branded, casual-to-dressy clothing, posted 27.5 per cent sales decline to $351.4 million in its third quarter (Q3) for FY20 ended on October 31, 2020 compared to sales of $484.7 million in same period last year. Company incurred a net loss of $55.8 million (Q3 FY19: $8.1 million).
“Eighteen months ago, we prioritised 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. In March of this year, as our business became 100 per cent digital overnight, we accelerated that transformation through innovation and state-of-the art technology enhancements,” Molly Langenstein, chief executive officer and president, Chico’s FAS, said in a press release.
Gross margin for the quarter was $77.1 million ($171.0 million). Selling, general and administrative expenses during Q3 FY20 were $153.0 million ($180.5 million). Company’s loss from operations during the reported quarter was $75.9 million ($9.5 million).
Sales of Chico’s brand slipped to $163.8 million ($249.9 million). White House Black Market sales were down to $104.0 million ($154.9 million). While Soma brand sales fell to $83.5 million ($79.7 million).
“Even with our stores now reopened, we continue to generate year-over-year double-digit digital sales increases. As a digital-first company, we believe we are competitively positioned to accelerate growth and gain market share in 2021 and beyond,” Langenstein said.