US specialty retailer Chico's FAS Q1 FY21 sales grow 38% to $388 mn

Chico's FAS, a US-based omnichannel specialty retailer of women's private branded, casual-to-dressy clothing, reported 38.4 per cent sales growth to $387.9 million in its first quarter (Q1) FY21 ended on May 1, 2021, compared to $280.2 million in the corresponding quarter of previous fiscal. The company’s net loss reduced to $8.9 million ($178.3 million).

 

“Our first quarter results underscore the tremendous progress we are making in our turnaround strategy and the power of our three unique brands and being a digital-first, customer-led company,” Molly Langenstein, Chico's FAS chief executive officer and president, said in a press release.

 

Gross margin for the quarter was $126.8 million (loss: $11.0 million), while selling, general and administrative expenses were $134.3 million ($130.1 million). The company’s loss from operations for Q1 FY21 was $7.5 million ($254.4 million).

 

Sales of Chico’s brand increased to $177.0 million ($131.4 million), whereas White House Black Market brand’s sales were $104.0 million ($83.9 million). Soma brand’s sales surged to $106.9 million ($64.9 million).

 

“The strong first quarter performance across all three brands was fuelled by our significant improvements in product and marketing, which drove full price selling. Our momentum started in the fourth quarter of fiscal 2019, stalled by the pandemic, is now back on track to deliver meaningful growth in the years to come,” Langenstein added.

 

“Our progress is measurable and the opportunities planned throughout the coming year will continue driving sales growth, even deeper customer loyalty and market share gains,” Langenstein concluded.