"The Chico's customer is still passionate about our company," said David F. Dyer, president and CEO. "She just wants her store back. We've become a little too predictable and cookie-cutter."

Soma Intimates and White House | Black Market remain the primary growth vehicles. Over time, Soma has the opportunity to be a $600-million to $1-billion business, with a potential of 300 to 400 stores, according to Chico's. The chain currently has 80 units and is expected to open another 120 to 150 stores over the next few years, Dyer said.

For the fourth quarter of 2008, net sales totaled $373.4 million versus $409.3 million over the same period in 2007. Comparable store sales decreased 13%. The company posted a net loss of $40.5 million, compared to a net loss of $20.5 million the previous year.

For the fiscal year, net sales were $1.6 billion, down from $1.7 billion last year. Overall comparable store sales decreased 15.1%. The company reported a net loss of $19.1 million, compared to net income of $88.9 million for the previous year.

Chico's FAS operates 1,074 women's specialty stores, including stores in 49 states, the District of Columbia, the US Virgin Islands and Puerto Rico, operating under the Chico's, White House | Black Market and Soma Intimates names.