Chico's Tops $1B In Sales

"Our financial position has never been stronger. Our balance sheet is solid and we have no debt," Scott A. Edmonds, President and CEO of the Fort Meyer's-based firm told investors in a conference call from the company's headquarters.

It was the eighth consecutive year the firm has seen comparable store sales climb into the double digits. In the 52-week fiscal period ending January 29, 2005, comparable store sales for company owned outlets increased 12.9 percent over the same period last year.

Chico's strengthened its financial condition further through an increase in cash and marketable securities which rose from $120 million to $266 million.

The firm's growth also was robust. The trendy women's clothing chain added 100 new stores for a 23 percent increase in total selling square footage, launched an intimate apparel line, Soma by Chico's, and completed the integration of White House/Black Market shops into its portfolio. The company expects that trend to continue into the new year with the addition of between 110 and 120 new stores during 2005.

"Our brand is stronger than ever. Our momentum is tremendous.," said Edmonds.

Yet, despite all the upbeat talk, the firm reduced its reported earnings by approximately 2 cents per share due to a change in accounting practices that resulted in a one-time, cumulative, non-cash adjustment to rent expense of approximately $4.1 million pre-tax dollars. But there was some good news for shareholders. A two-for-one stock split, approved in February, doubled their stake in the company.

Established in 1983 as a small store selling Mexican folk art and cotton sweaters on Florida's Sanibel Island, Chico's now operates 655 women's specialty shops in 47 states along with the District of Columbia, the Virgin Islands and Puerto Rico. Operating under the Chico's, White House/Black Market and Soma by Chico's brands, it sells exclusively designed, private-label women's clothing and accessories.