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Chico's FAS Inc. Reports Operating Results (10-K)

March 21, 2012 | About:

Chico's FAS Inc. (NYSE:CHS) filed Annual Report for the period ended 2012-01-28.

Chicos Fas Inc has a market cap of $2.53 billion; its shares were traded at around $15.52 with a P/E ratio of 18 and P/S ratio of 1.2. The dividend yield of Chicos Fas Inc stocks is 1.4%.

Highlight of Business Operations:

In fiscal 2011, net sales increased 15.3% to $2.196 billion, the highest in our history, compared to $1.905 billion in fiscal 2010, and comparable sales increased 8.2% following an 8.3% increase in fiscal 2010. This represents the third consecutive year of positive comparable sales performance.

In fiscal 2011, net income increased 22.1% to $140.9 million compared to $115.4 million in fiscal 2010, and earnings per diluted share increased 28.1% to $0.82 compared to $0.64 in fiscal 2010. Net income for fiscal 2011 included $3.6 million of after-tax one-time acquisition and integration costs related to Boston Proper, or $.02 per diluted share.

Net sales increased 15.3% in fiscal 2011. The increase reflects a comparable sales increase of 8.2%, new store openings, and $39.5 million in sales for Boston Proper since the date of acquisition. Comparable sales is defined as sales from stores open for at least twelve full months, including stores that have been expanded or relocated within the same general market and includes online sales. The comparable sales increase reflects increases in average dollar sale and transaction count. The Chicos/Soma Intimates brands comparable sales increased 6.4% following a 7.3% increase in fiscal 2010 and the WH|BM brands comparable sales increased 12.2% following a 10.6% increase for fiscal 2010. Boston Propers sales are excluded from the comparable sales calculation until twelve months after the acquisition.

For fiscal 2011, gross margin was $1.226 billion, an increase of 14.8%, compared to $1.069 billion in fiscal 2010. As a percentage of net sales, gross margin was 55.8% which was a 30 basis point decrease from fiscal 2010. This decrease primarily reflects higher full-price selling and effective promotional activities which were more than offset by higher discounting in the Chicos brand in the second half of the year.

For fiscal 2011, SG&A was $998.9 million, an increase of 12.0%, compared to $891.5 million for fiscal 2010. This increase is primarily due to the costs associated with opening 105 net new stores since the end of fiscal 2010 and increased marketing initiatives. As a percentage of net sales, SG&A was 45.5%, which was a 130 basis point decrease from fiscal 2010. This decrease was primarily attributable to the leverage impact from higher sales on store expenses partially offset by increased marketing expenses.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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