Women’s apparel retailer Chico’s FAS posted a 59 percent drop in fourth-quarter earnings becuase of fashion missteps that resulted in heavy markdowns.
For the period ended Feb. 3, earnings fell to $18.2 million, or 10 cents a diluted share, from $44.5 million, or 24 cents, in the year-ago period. These results include a tax expense of $8.6 million, or about 3 cents a diluted share, related to the closure of the Fatigues brand operations. Sales increased 18.8 percent to $446.3 million from $375.7 million, while total same-store sales fell 2 percent for the quarter.
For the full fiscal year, net income dropped 14 percent to $166.6 million, or 93 cents a diluted share, from $193.9 million, or $1.06 a share, in the prior year, while sales increased 17.2 percent to $1.65 billion from $1.4 billion.
“Although February sales and same-store sales were somewhat off planned levels, we are pleased with our initial sell-through of most of our spring line and our February gross margins, especially considering the weather,” said Scott Edmunds, president and chief executive officer, in a statement.
Separately, the company named Patricia Darrow-Smith to brand president of White House|Black Market, Michele Cloutier to chief merchandising officer of Chico’s brand and Michael Leedy as executive vice president and chief merchandising officer of the company.