Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
Specialty retailer $CHS has raised its 4Q17 comparable sales outlook to the range of negative 5% to negative 7% from the previous guidance of negative high single-digits. Meanwhile, Chico's continues to expect 4Q17 gross margin to be about flat to up slightly. SG&A expenses are expected to be broadly unchanged from last year, on a comparable basis.
Apparel retailer $CHS has appointed David Pastrana as president of its White House Black Market brand, effective January 10, 2018. He will report to President Shelley Broader. Pastrana has held senior leadership positions at Zara, Topshop Topman and Sears Holding Corporation.
$CHS declared a quarterly cash dividend of $0.082 per share of its common stock, a 3.1% increase over the dividend rate from September 2016. The dividend is payable on September 25, 2017 to Chico's FAS shareholders as on September 11, 2017.
Specialty retailer $CHS has entered into a partnership with technology company First Insight for the latter’s consumer-driven predictive analytics service. By using the service, Chico’s will be able to make designs accurately and take quick buying and pricing decisions on the apparel and accessories it offers to consumers.
$CHS said that on lease renewals over the next three years and concessions the company gets, it is seeing consistent comp trends across different mall types. Also, the company added that it is getting more response on partnership on its rentals.
For 2Q17, $CHS expects GM and SG&A to likely deleverage due to its expectation on sales and the need to clear through the 1Q17 inventory. For FY17, the company expects GM as a percent of sales to be flat to up 30 BP and flat SG&A leverage. $CHS also reduced its CapEx plans by $10MM to a range of $60-70MM for FY17.
At 1Q17 end, $CHS had strong cash position with $170MM in cash and short term investments and $80MM in debt. CapEx for the quarter totaled $9.5MM, mostly comprised of reinvestments in existing stores and technology projects. In 2017, $CHS is investing in 55 locations through relocation, refreshes and remodels.
$CHS said the company reduced its marketing spend to be more in line with its peers at 4-5% of sales, by decreasing unproductive spend. The company added that though the comp sales decline of 10% at the Chico's brand was disappointing in 1Q17, the brand displayed agility by managing inventory & expense to leverage GM and significantly reduce SG&A.
$CHS' BoD has nominated Deborah L. Kerr for election at the company's annual meeting on June 22, 2017. Ms. Kerr will fill the remaining one year term of Ross E. Roeder, who is retiring from the Board effective at the annual meeting. She currently serves on the boards of directors of DH Corporation and EXLService Holdings, Inc.
The BoD of $CHS declared a quarterly cash dividend of $0.0825 per share of its common stock, a 3.1% increase over the March 2016 dividend rate. This represents the seventh annual increase since the dividend was established in 2010. The dividend is payable on March 27, 2017 to shareholders of record on March 13, 2017.
$CHS said it continue to see a challenging and competitive apparel retail environment. The company expects comparable sales to be down a low single-digit percentage in 4Q16. $CHS plans to save $20MM in marketing expenses in FY16 for a total of $30mm on an annualized basis, which represents a $5mm increase over the prior targets.
$CHS expects its total cost reduction and operating efficiency savings to be between $95-$115MM on an annualized basis. The company has planned inventory in 4Q16 to be down compared to last year. The company is planning to close approx. 35 stores in FY16.
$CHS' BoD declared a quarterly cash dividend of $0.08 per share of its common stock, a 3.2% increase over the dividend rate from December 2015. The dividend is payable on Dec. 19, 2016 to shareholders of record on Dec. 5, 2016. The BoD amended bylaws to implement proxy access, effective Nov. 17, 2016.
Women's clothing chain $CHS reported 3Q16 earnings of $23.6MM, or $0.18 per share, compared to a net loss of $11.6MM, or $0.09 per share a year ago. Expenses fell to $188.35MM from $226.26MM. Net sales were $596.9MM, down 7.5% from $645.4MM a year ago.