Chicos FAS (CHS) Increases Q4 Comps Outlook to Down 5%-7%

Chico's FAS, Inc. (NYSE: CHS) today announced that the Company is updating its outlook for the fiscal 2017 fourth quarter ending February 3, 2018.

Based on results to date, the Company anticipates fourth quarter total comparable sales in the negative 5% to negative 7% range, an improvement on its previous outlook of negative high single-digits. As previously announced, approximately $30 million in sales from the 53rd week of fiscal 2017 are not included in the comparable sales calculation for the Company's outlook.

The Company continues to expect fourth quarter gross margin rate to be approximately flat to up slightly, in line with its previous outlook. SG&A expenses for the fourth quarter are expected to be approximately flat to last year, after incorporating costs from the 53rd week.

The Company will release its full fourth quarter and fiscal 2017 results on February 28, 2018 and will host a conference call to review financial results on that date. Details for the conference call will be announced at a later time.

U.S. Tax Reform

The Company has completed a preliminary analysis of the impact of the Tax Cuts and Jobs Act of 2017 signed into law on December 22, 2017 on its business. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21% and limitations on the deductibility of interest expense and executive compensation. At this time, the Company anticipates that the fiscal 2018 effective tax rate will be in the range of 26% to 28%. This compares to a pre-tax reform expected effective tax rate of approximately 38%.

ICR Conference

Chico's will participate in the 2018 ICR Conference to be held at the JW Marriott Orlando Grande Lakes in Orlando, Florida on January 8 - 10, 2018. Management is scheduled to host a "Fireside Chat" on Monday, January 8, 2018 at 11:30 AM ET, which will be webcast live and available for 12 months in the Investor Relations section of the Company's website at www.chicosfas.com.

You May Also Be Interested In

• Virco revenue falls 6.1% in first half as school furniture demand dips
• Asana shares tumble on weak third quarter earnings outlook
• Hyperscale Data reports $53M in cash and Bitcoin holdings