After a "challenging" 2006, the company has revised its targetednet new store openings for fiscal 2007 downward to between 135 and145 new stores (excluding the 10 Fitigues planned closures). Planscall for 55 to 60 new Chico's stores, 55 to 60 White House/BlackMarket stores and 20 to 25 Soma stores. In addition, 45 to 55relocations/expansions are planned.

"We have decided to slow down the Soma store growth somewhat sothat we can focus on strengthening the management team, improvingprofitability and expanding Soma beyond the Chico's customer," saidScott Edmonds, president and CEO. "We continue to believe, now morethan ever, that the Soma intimate apparel concept represents anexcellent market opportunity within the specialty apparelarena."

Soma stores will drop the "by Chico's" tagline in an effort toexpand its market beyond Chico's shoppers, which currentlyconstitutes 90% of its customer base, Edmonds said. In addition,Soma's site criteria are being modified after testing a variety oflocations and sizes. Future units will average 2,020 sf.