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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Chicos FAS Inc | NYSE:CHS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 7.59 | 0 | 01:00:00 |
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FORM
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10-Q
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☑
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Chico's FAS, Inc.
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(Exact name of registrant as specified in charter)
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Florida
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59-2389435
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(State of Incorporation)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, Par Value $0.01 Per Share
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CHS
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New York Stock Exchange
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Large accelerated filer
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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ITEM 1.
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FINANCIAL STATEMENTS
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||||||||||||||
|
November 2, 2019
|
|
November 3, 2018
|
|
November 2, 2019
|
|
November 3, 2018
|
||||||||||||||||||||
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||||||||||||||||
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales
|
|
Amount
|
|
% of
Sales |
|
Amount
|
|
% of
Sales |
||||||||||||
Net Sales
|
$
|
484,706
|
|
|
100.0
|
%
|
|
$
|
499,877
|
|
|
100.0
|
%
|
|
$
|
1,510,790
|
|
|
100.0
|
%
|
|
$
|
1,606,412
|
|
|
100.0
|
%
|
Cost of goods sold
|
313,668
|
|
|
64.7
|
|
|
318,899
|
|
|
63.8
|
|
|
980,299
|
|
|
64.9
|
|
|
1,001,699
|
|
|
62.4
|
|
||||
Gross Margin
|
171,038
|
|
|
35.3
|
|
|
180,978
|
|
|
36.2
|
|
|
530,491
|
|
|
35.1
|
|
|
604,713
|
|
|
37.6
|
|
||||
Selling, general and administrative expenses
|
180,586
|
|
|
37.3
|
|
|
178,394
|
|
|
35.7
|
|
|
536,977
|
|
|
35.5
|
|
|
538,902
|
|
|
33.5
|
|
||||
(Loss) Income from Operations
|
(9,548
|
)
|
|
(2.0
|
)
|
|
2,584
|
|
|
0.5
|
|
|
(6,486
|
)
|
|
(0.4
|
)
|
|
65,811
|
|
|
4.1
|
|
||||
Interest income (expense), net
|
25
|
|
|
0.0
|
|
|
97
|
|
|
0.0
|
|
|
79
|
|
|
0.0
|
|
|
(458
|
)
|
|
0.0
|
|
||||
(Loss) Income before Income Taxes
|
(9,523
|
)
|
|
(2.0
|
)
|
|
2,681
|
|
|
0.5
|
|
|
(6,407
|
)
|
|
(0.4
|
)
|
|
65,353
|
|
|
4.1
|
|
||||
Income tax (benefit) provision
|
(1,400
|
)
|
|
(0.3
|
)
|
|
(3,800
|
)
|
|
(0.8
|
)
|
|
2,000
|
|
|
0.2
|
|
|
13,100
|
|
|
0.8
|
|
||||
Net (Loss) Income
|
$
|
(8,123
|
)
|
|
(1.7
|
)%
|
|
$
|
6,481
|
|
|
1.3
|
%
|
|
$
|
(8,407
|
)
|
|
(0.6
|
)%
|
|
$
|
52,253
|
|
|
3.3
|
%
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income per common share - basic
|
$
|
(0.07
|
)
|
|
|
|
$
|
0.05
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
$
|
0.41
|
|
|
|
||||
Net (loss) income per common and common equivalent share – diluted
|
$
|
(0.07
|
)
|
|
|
|
$
|
0.05
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
$
|
0.41
|
|
|
|
||||
Weighted average common shares outstanding – basic
|
114,997
|
|
|
|
|
122,201
|
|
|
|
|
114,744
|
|
|
|
|
124,069
|
|
|
|
||||||||
Weighted average common and common equivalent shares outstanding – diluted
|
114,997
|
|
|
|
|
122,273
|
|
|
|
|
114,744
|
|
|
|
|
124,120
|
|
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||
|
November 2, 2019
|
|
November 3, 2018
|
|
November 2, 2019
|
|
November 3, 2018
|
||||||||
Net (loss) income
|
$
|
(8,123
|
)
|
|
$
|
6,481
|
|
|
$
|
(8,407
|
)
|
|
$
|
52,253
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on marketable securities, net of taxes
|
14
|
|
|
(1
|
)
|
|
208
|
|
|
54
|
|
||||
Foreign currency translation losses
|
(286
|
)
|
|
(388
|
)
|
|
(265
|
)
|
|
(475
|
)
|
||||
Comprehensive (loss) income
|
$
|
(8,395
|
)
|
|
$
|
6,092
|
|
|
$
|
(8,464
|
)
|
|
$
|
51,832
|
|
|
November 2, 2019
|
|
February 2, 2019
|
|
November 3, 2018
|
||||||
ASSETS
|
|
|
|
|
|
||||||
Current Assets:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
70,188
|
|
|
$
|
124,128
|
|
|
$
|
169,380
|
|
Marketable securities, at fair value
|
57,253
|
|
|
61,987
|
|
|
59,484
|
|
|||
Inventories
|
277,473
|
|
|
235,218
|
|
|
266,100
|
|
|||
Prepaid expenses and other current assets
|
53,598
|
|
|
63,845
|
|
|
62,167
|
|
|||
Total Current Assets
|
458,512
|
|
|
485,178
|
|
|
557,131
|
|
|||
Property and Equipment, net
|
323,591
|
|
|
370,932
|
|
|
385,387
|
|
|||
Right of Use Assets
|
664,052
|
|
|
—
|
|
|
—
|
|
|||
Other Assets:
|
|
|
|
|
|
||||||
Goodwill
|
96,774
|
|
|
96,774
|
|
|
96,774
|
|
|||
Other intangible assets, net
|
38,930
|
|
|
38,930
|
|
|
38,930
|
|
|||
Other assets, net
|
18,511
|
|
|
15,220
|
|
|
13,929
|
|
|||
Total Other Assets
|
154,215
|
|
|
150,924
|
|
|
149,633
|
|
|||
|
$
|
1,600,370
|
|
|
$
|
1,007,034
|
|
|
$
|
1,092,151
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Current Liabilities:
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
151,664
|
|
|
$
|
143,404
|
|
|
$
|
150,224
|
|
Current lease liabilities
|
155,403
|
|
|
—
|
|
|
—
|
|
|||
Other current and deferred liabilities
|
112,456
|
|
|
131,820
|
|
|
126,337
|
|
|||
Total Current Liabilities
|
419,523
|
|
|
275,224
|
|
|
276,561
|
|
|||
Noncurrent Liabilities:
|
|
|
|
|
|
||||||
Long-term debt
|
46,250
|
|
|
57,500
|
|
|
61,250
|
|
|||
Long-term lease liabilities
|
578,971
|
|
|
—
|
|
|
—
|
|
|||
Other noncurrent and deferred liabilities
|
8,512
|
|
|
89,109
|
|
|
93,323
|
|
|||
Deferred taxes
|
3,999
|
|
|
5,237
|
|
|
7,884
|
|
|||
Total Noncurrent Liabilities
|
637,732
|
|
|
151,846
|
|
|
162,457
|
|
|||
Commitments and Contingencies (see Note 11)
|
|
|
|
|
|
||||||
Shareholders’ Equity:
|
|
|
|
|
|
||||||
Preferred stock, $0.01 par value; 2,500 shares authorized; no shares issued and outstanding
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock, $0.01 par value; 400,000 shares authorized; 159,918 and 158,246 and 158,407 shares issued respectively; and 118,621 and 116,949 and 125,743 shares outstanding, respectively
|
1,186
|
|
|
1,169
|
|
|
1,257
|
|
|||
Additional paid-in capital
|
490,281
|
|
|
486,406
|
|
|
482,340
|
|
|||
Treasury stock, at cost, 41,297 and 41,297 and 32,664 shares, respectively
|
(494,395
|
)
|
|
(494,395
|
)
|
|
(444,309
|
)
|
|||
Retained earnings
|
546,461
|
|
|
587,145
|
|
|
614,349
|
|
|||
Accumulated other comprehensive loss
|
(418
|
)
|
|
(361
|
)
|
|
(504
|
)
|
|||
Total Shareholders’ Equity
|
543,115
|
|
|
579,964
|
|
|
653,133
|
|
|||
|
$
|
1,600,370
|
|
|
$
|
1,007,034
|
|
|
$
|
1,092,151
|
|
|
Thirteen Weeks Ended
|
||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
|
||||||||||||||||||
|
Shares
|
|
Par Value
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
|||||||||||||||||
BALANCE, August 3, 2019
|
118,000
|
|
|
$
|
1,180
|
|
|
$
|
487,789
|
|
|
41,297
|
|
|
$
|
(494,395
|
)
|
|
$
|
554,694
|
|
|
$
|
(146
|
)
|
|
$
|
549,122
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,123
|
)
|
|
—
|
|
|
(8,123
|
)
|
||||||
Unrealized gains on marketable securities, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(286
|
)
|
|
(286
|
)
|
||||||
Issuance of common stock
|
640
|
|
|
6
|
|
|
690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
696
|
|
||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(110
|
)
|
|
—
|
|
|
(110
|
)
|
||||||
Repurchase of common stock and tax withholdings related to share-based awards
|
(19
|
)
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
1,867
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,867
|
|
||||||
BALANCE, November 2, 2019
|
118,621
|
|
|
$
|
1,186
|
|
|
$
|
490,281
|
|
|
41,297
|
|
|
$
|
(494,395
|
)
|
|
$
|
546,461
|
|
|
$
|
(418
|
)
|
|
$
|
543,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
BALANCE, August 4, 2018
|
125,710
|
|
|
$
|
1,257
|
|
|
$
|
476,480
|
|
|
32,658
|
|
|
$
|
(444,252
|
)
|
|
$
|
607,643
|
|
|
$
|
(115
|
)
|
|
$
|
641,013
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,481
|
|
|
—
|
|
|
6,481
|
|
||||||
Unrealized losses on marketable securities, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(388
|
)
|
|
(388
|
)
|
||||||
Issuance of common stock
|
63
|
|
|
—
|
|
|
768
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
768
|
|
||||||
Dividends on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
225
|
|
|
—
|
|
|
225
|
|
||||||
Repurchase of common stock and tax withholdings related to share-based awards
|
(30
|
)
|
|
—
|
|
|
(193
|
)
|
|
6
|
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
5,285
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,285
|
|
||||||
BALANCE, November 3, 2018
|
125,743
|
|
|
$
|
1,257
|
|
|
$
|
482,340
|
|
|
32,664
|
|
|
$
|
(444,309
|
)
|
|
$
|
614,349
|
|
|
$
|
(504
|
)
|
|
$
|
653,133
|
|
|
Thirty-Nine Weeks Ended
|
||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
|
||||||||||||||||||
|
Shares
|
|
Par Value
|
|
|
Shares
|
|
Amount
|
|
|
|
Total
|
|||||||||||||||||
BALANCE, February 2, 2019
|
116,949
|
|
|
$
|
1,169
|
|
|
$
|
486,406
|
|
|
41,297
|
|
|
$
|
(494,395
|
)
|
|
$
|
587,145
|
|
|
$
|
(361
|
)
|
|
$
|
579,964
|
|
Cumulative effect of adoption of ASU 2016-02 (see Note 1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,287
|
)
|
|
—
|
|
|
(1,287
|
)
|
||||||
BALANCE, February 2, 2019, as adjusted
|
116,949
|
|
|
1,169
|
|
|
486,406
|
|
|
41,297
|
|
|
(494,395
|
)
|
|
585,858
|
|
|
(361
|
)
|
|
578,677
|
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,407
|
)
|
|
—
|
|
|
(8,407
|
)
|
||||||
Unrealized gains on marketable securities, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
|
208
|
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(265
|
)
|
|
(265
|
)
|
||||||
Issuance of common stock
|
2,129
|
|
|
21
|
|
|
1,067
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,088
|
|
||||||
Dividends on common stock ($0.2625 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,990
|
)
|
|
—
|
|
|
(30,990
|
)
|
||||||
Repurchase of common stock & tax withholdings related to share-based awards
|
(457
|
)
|
|
(4
|
)
|
|
(2,545
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,549
|
)
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
5,353
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,353
|
|
||||||
BALANCE, November 2, 2019
|
118,621
|
|
|
$
|
1,186
|
|
|
$
|
490,281
|
|
|
41,297
|
|
|
$
|
(494,395
|
)
|
|
$
|
546,461
|
|
|
$
|
(418
|
)
|
|
$
|
543,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
BALANCE, February 3, 2018
|
127,471
|
|
|
$
|
1,275
|
|
|
$
|
468,806
|
|
|
29,114
|
|
|
$
|
(413,465
|
)
|
|
$
|
599,810
|
|
|
$
|
(44
|
)
|
|
$
|
656,382
|
|
Cumulative effect of adoption of ASU 2018-02, ASU 2016-16 and ASU 2014-09
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,015
|
)
|
|
(39
|
)
|
|
(5,054
|
)
|
||||||
BALANCE, February 3, 2018, as adjusted
|
127,471
|
|
|
1,275
|
|
|
468,806
|
|
|
29,114
|
|
|
(413,465
|
)
|
|
594,795
|
|
|
(83
|
)
|
|
651,328
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,253
|
|
|
—
|
|
|
52,253
|
|
||||||
Unrealized gains on marketable securities, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
54
|
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(475
|
)
|
|
(475
|
)
|
||||||
Issuance of common stock
|
2,179
|
|
|
21
|
|
|
1,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,448
|
|
||||||
Dividends on common stock ($0.255 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32,699
|
)
|
|
—
|
|
|
(32,699
|
)
|
||||||
Repurchase of common stock & tax withholdings related to share-based awards
|
(3,907
|
)
|
|
(39
|
)
|
|
(3,416
|
)
|
|
3,550
|
|
|
(30,844
|
)
|
|
—
|
|
|
—
|
|
|
(34,299
|
)
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
15,523
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,523
|
|
||||||
BALANCE, November 3, 2018
|
125,743
|
|
|
$
|
1,257
|
|
|
$
|
482,340
|
|
|
32,664
|
|
|
$
|
(444,309
|
)
|
|
$
|
614,349
|
|
|
$
|
(504
|
)
|
|
$
|
653,133
|
|
|
Thirty-Nine Weeks Ended
|
||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net (loss) income
|
$
|
(8,407
|
)
|
|
$
|
52,253
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
67,876
|
|
|
69,290
|
|
||
Non-cash lease expense
|
160,363
|
|
|
—
|
|
||
Loss on disposal and impairment of property and equipment, net
|
225
|
|
|
3,592
|
|
||
Deferred tax benefit
|
(778
|
)
|
|
1,195
|
|
||
Share-based compensation expense
|
5,353
|
|
|
15,523
|
|
||
Deferred rent and lease credits
|
—
|
|
|
(14,868
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Inventories
|
(42,255
|
)
|
|
(33,198
|
)
|
||
Prepaid expenses and other assets
|
(10,861
|
)
|
|
(190
|
)
|
||
Accounts payable
|
8,261
|
|
|
31,947
|
|
||
Accrued and other liabilities
|
(2,600
|
)
|
|
(6,780
|
)
|
||
Lease liability
|
(169,970
|
)
|
|
—
|
|
||
Net cash provided by operating activities
|
7,207
|
|
|
118,764
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Purchases of marketable securities
|
(35,020
|
)
|
|
(31,300
|
)
|
||
Proceeds from sale of marketable securities
|
39,967
|
|
|
31,946
|
|
||
Purchases of property and equipment
|
(22,126
|
)
|
|
(36,601
|
)
|
||
Net cash used in investing activities
|
(17,179
|
)
|
|
(35,955
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from borrowings
|
—
|
|
|
61,250
|
|
||
Payments on borrowings
|
(11,250
|
)
|
|
(68,750
|
)
|
||
Proceeds from issuance of common stock
|
1,088
|
|
|
1,448
|
|
||
Dividends paid
|
(30,992
|
)
|
|
(32,674
|
)
|
||
Repurchase of common stock
|
—
|
|
|
(30,879
|
)
|
||
Payments of tax withholdings related to share-based awards
|
(2,549
|
)
|
|
(3,420
|
)
|
||
Net cash used in financing activities
|
(43,703
|
)
|
|
(73,025
|
)
|
||
Effects of exchange rate changes on cash and cash equivalents
|
(265
|
)
|
|
(475
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(53,940
|
)
|
|
9,309
|
|
||
Cash and Cash Equivalents, Beginning of period
|
124,128
|
|
|
160,071
|
|
||
Cash and Cash Equivalents, End of period
|
$
|
70,188
|
|
|
$
|
169,380
|
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
||||
Cash paid for interest
|
$
|
1,654
|
|
|
$
|
2,678
|
|
Cash (received) paid for income taxes, net
|
$
|
(506
|
)
|
|
$
|
22,481
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||||||||||||||
|
November 2, 2019
|
|
November 3, 2018
|
|
November 2, 2019
|
|
November 3, 2018
|
||||||||||||||||||||
Chico's
|
$
|
249,973
|
|
|
51.5
|
%
|
|
$
|
259,503
|
|
|
51.9
|
%
|
|
$
|
795,599
|
|
|
52.6
|
%
|
|
$
|
847,247
|
|
|
52.8
|
%
|
WHBM
|
154,941
|
|
|
32.0
|
|
|
167,805
|
|
|
33.6
|
|
|
455,695
|
|
|
30.2
|
|
|
519,391
|
|
|
32.3
|
|
||||
Soma (1)
|
79,792
|
|
|
16.5
|
|
|
72,569
|
|
|
14.5
|
|
|
259,496
|
|
|
17.2
|
|
|
239,774
|
|
|
14.9
|
|
||||
Total Net Sales
|
$
|
484,706
|
|
|
100.0
|
%
|
|
$
|
499,877
|
|
|
100.0
|
%
|
|
$
|
1,510,790
|
|
|
100.0
|
%
|
|
$
|
1,606,412
|
|
|
100.0
|
%
|
|
November 2, 2019
|
||||||
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||
Operating lease cost (1)
|
$
|
62,696
|
|
|
$
|
189,939
|
|
|
November 2, 2019
|
||
Right of Use Assets
|
$
|
664,052
|
|
|
|
||
Current lease liabilities
|
$
|
155,403
|
|
Long-term lease liabilities
|
578,971
|
|
|
Total operating lease liabilities
|
$
|
734,374
|
|
|
|
||
Weighted Average Remaining Lease Term (years)
|
4.9
|
|
|
|
|
||
Weighted Average Discount Rate (1)
|
5.7
|
%
|
|
Thirty-Nine Weeks Ended
|
||
|
November 2, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash outflows
|
$
|
169,970
|
|
Right of use assets obtained in exchange for lease obligations, non-cash
|
22,346
|
|
Fiscal Year Ending:
|
|
||
February 1, 2020 (1)
|
$
|
36,572
|
|
January 30, 2021
|
209,945
|
|
|
January 29, 2022
|
185,251
|
|
|
January 28, 2023
|
147,479
|
|
|
February 4, 2024
|
100,312
|
|
|
Thereafter
|
168,708
|
|
|
Total future minimum lease payments
|
$
|
848,267
|
|
Less imputed interest
|
(113,893
|
)
|
|
Total
|
$
|
734,374
|
|
|
Number of
Shares |
|
Weighted
Average Grant Date Fair Value |
|||
Unvested, beginning of period
|
2,715,466
|
|
|
$
|
10.92
|
|
Granted
|
3,563,105
|
|
|
4.22
|
|
|
Vested
|
(1,266,059
|
)
|
|
11.28
|
|
|
Forfeited
|
(1,638,433
|
)
|
|
7.11
|
|
|
Unvested, end of period
|
3,374,079
|
|
|
5.56
|
|
|
Number of Units/
Shares |
|
Weighted
Average Grant Date Fair Value |
|||
Unvested, beginning of period
|
1,067,338
|
|
|
$
|
11.40
|
|
Granted
|
2,740,650
|
|
|
2.87
|
|
|
Vested
|
(244,628
|
)
|
|
13.19
|
|
|
Forfeited
|
(1,297,434
|
)
|
|
7.24
|
|
|
Unvested, end of period
|
2,265,926
|
|
|
3.27
|
|
|
Number of
Options |
|
Weighted
Average Exercise Price |
|||
Outstanding, beginning of period
|
214,277
|
|
|
$
|
13.54
|
|
Granted
|
—
|
|
|
—
|
|
|
Exercised
|
—
|
|
|
—
|
|
|
Forfeited or expired
|
(2,000
|
)
|
|
13.26
|
|
|
Outstanding and exercisable, end of period
|
212,277
|
|
|
13.54
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||
|
November 2, 2019
|
|
November 3, 2018
|
|
November 2, 2019
|
|
November 3, 2018
|
||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net (loss) income
|
$
|
(8,123
|
)
|
|
$
|
6,481
|
|
|
$
|
(8,407
|
)
|
|
$
|
52,253
|
|
Net income and dividends declared allocated to participating securities
|
—
|
|
|
(182
|
)
|
|
—
|
|
|
(1,365
|
)
|
||||
Net (loss) income available to common shareholders
|
$
|
(8,123
|
)
|
|
$
|
6,299
|
|
|
$
|
(8,407
|
)
|
|
$
|
50,888
|
|
Denominator
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – basic
|
114,997
|
|
|
122,201
|
|
|
114,744
|
|
|
124,069
|
|
||||
Dilutive effect of non-participating securities
|
—
|
|
|
72
|
|
|
—
|
|
|
51
|
|
||||
Weighted average common and common equivalent shares outstanding – diluted
|
114,997
|
|
|
122,273
|
|
|
114,744
|
|
|
124,120
|
|
||||
Net (loss) income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.07
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.41
|
|
Diluted
|
$
|
(0.07
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.41
|
|
|
Level 1
|
—
|
Unadjusted quoted prices in active markets for identical assets or liabilities
|
|
|
|
|
|
Level 2
|
—
|
Unadjusted quoted prices in active markets for similar assets or liabilities; or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or Inputs other than quoted prices that are observable for the asset or liability
|
|
|
|
|
|
Level 3
|
—
|
Unobservable inputs for the asset or liability
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
Balance as of November 2, 2019
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Current Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market accounts
|
$
|
6,898
|
|
|
$
|
6,898
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Marketable securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
54,264
|
|
|
—
|
|
|
54,264
|
|
|
—
|
|
||||
Commercial paper
|
2,989
|
|
|
—
|
|
|
2,989
|
|
|
—
|
|
||||
Noncurrent Assets
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan
|
7,168
|
|
|
7,168
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
71,319
|
|
|
$
|
14,066
|
|
|
$
|
57,253
|
|
|
$
|
—
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
46,250
|
|
|
$
|
—
|
|
|
$
|
46,250
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
|
Balance as of February 2, 2019
|
|
|
|
|
|
|
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Current Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market accounts
|
$
|
711
|
|
|
$
|
711
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Marketable securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
60,281
|
|
|
—
|
|
|
60,281
|
|
|
—
|
|
||||
Commercial paper
|
1,706
|
|
|
—
|
|
|
1,706
|
|
|
—
|
|
||||
Noncurrent Assets
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan
|
6,644
|
|
|
6,644
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
69,342
|
|
|
$
|
7,355
|
|
|
$
|
61,987
|
|
|
$
|
—
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
57,500
|
|
|
$
|
—
|
|
|
$
|
57,500
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
|
Balance as of November 3, 2018
|
|
|
|
|
|
|
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
||||||||
Current Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market accounts
|
$
|
2,691
|
|
|
$
|
2,691
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Marketable securities:
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
2,306
|
|
|
—
|
|
|
2,306
|
|
|
—
|
|
||||
Corporate bonds
|
57,178
|
|
|
—
|
|
|
57,178
|
|
|
—
|
|
||||
Noncurrent Assets
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan
|
6,966
|
|
|
6,966
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
69,141
|
|
|
$
|
9,657
|
|
|
$
|
59,484
|
|
|
$
|
—
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
61,250
|
|
|
$
|
—
|
|
|
$
|
61,529
|
|
|
$
|
—
|
|
|
November 2, 2019
|
|
February 2, 2019
|
|
November 3, 2018
|
||||||
Credit Agreement
|
$
|
46,250
|
|
|
$
|
57,500
|
|
|
$
|
61,250
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Chico’s reported sequential improvement in comparable sales, reflecting a focus on key items and a more balanced inventory position between basics and fashion.
|
•
|
WHBM reported sequential improvement in comparable sales enabled by changes made in talent, merchandising and product design.
|
•
|
Soma reported double-digit positive comparable sales growth for the second consecutive quarter, driven by product innovation and inventory and marketing investments.
|
•
|
In the third quarter, the Company strengthened its product teams and made investments in growth areas, such as digital and customer experience. The Company also repositioned some departments, consolidated others, and reduced areas where the Company can operate more efficiently with fewer resources.
|
•
|
The Company completed the implementation of its Buy On-Line, Pick-up In-Store (BOPIS) capability across all of its brands.
|
•
|
The Company is actively diversifying its country of origin mix and reducing manufacturing penetration in China, thereby mitigating the majority of tariff increases.
|
•
|
Driving stronger sales through improved product and marketing;
|
•
|
Optimizing the customer journey by simplifying, digitizing and extending our unique and personalized service; and
|
•
|
Transforming our sourcing and supply chain operations to increase product speed to market and improve quality.
|
|
Thirteen Weeks Ended
|
||||||||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||||||||
|
|
|
|
||||||||||
|
(dollars in millions) (1)
|
||||||||||||
Chico's
|
$
|
250
|
|
|
51.5
|
%
|
|
$
|
260
|
|
|
51.9
|
%
|
WHBM
|
155
|
|
|
32.0
|
|
|
168
|
|
|
33.6
|
|
||
Soma (2)
|
80
|
|
|
16.5
|
|
|
73
|
|
|
14.5
|
|
||
Total Net Sales
|
$
|
485
|
|
|
100.0
|
%
|
|
$
|
500
|
|
|
100.0
|
%
|
|
Thirteen Weeks Ended
|
||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||
|
|
|
|
||||
|
(dollars in millions)
|
||||||
Cost of goods sold
|
$
|
314
|
|
|
$
|
319
|
|
Gross margin
|
171
|
|
|
181
|
|
||
Gross margin percentage
|
35.3
|
%
|
|
36.2
|
%
|
|
Thirteen Weeks Ended
|
||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||
|
|
|
|
||||
|
(dollars in millions)
|
||||||
Selling, general and administrative expenses
|
$
|
181
|
|
|
$
|
178
|
|
Percentage of total net sales
|
37.3
|
%
|
|
35.7
|
%
|
|
Thirty-Nine Weeks Ended
|
||||||||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||||||||
|
|
|
|
||||||||||
|
(dollars in millions)
|
||||||||||||
Chico's
|
$
|
796
|
|
|
52.6
|
%
|
|
$
|
847
|
|
|
52.8
|
%
|
WHBM
|
456
|
|
|
30.2
|
|
|
519
|
|
|
32.3
|
|
||
Soma (1)
|
259
|
|
|
17.2
|
|
|
240
|
|
|
14.9
|
|
||
Total net sales
|
$
|
1,511
|
|
|
100.0
|
%
|
|
$
|
1,606
|
|
|
100.0
|
%
|
|
Thirty-Nine Weeks Ended
|
||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||
|
|
|
|
||||
|
(dollars in millions)
|
||||||
Cost of goods sold
|
$
|
980
|
|
|
$
|
1,002
|
|
Gross margin
|
530
|
|
|
605
|
|
||
Gross margin percentage
|
35.1
|
%
|
|
37.6
|
%
|
|
Thirty-Nine Weeks Ended
|
||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||
|
|
|
|
||||
|
(dollars in millions)
|
||||||
Selling, general and administrative expenses
|
$
|
537
|
|
|
$
|
539
|
|
Percentage of total net sales
|
35.5
|
%
|
|
33.5
|
%
|
|
Thirty-Nine Weeks Ended
|
||||||
|
November 2, 2019
|
|
November 3, 2018
|
||||
|
(dollars in millions)
|
||||||
Net cash provided by operating activities
|
$
|
7
|
|
|
$
|
119
|
|
Net cash used in investing activities
|
(17
|
)
|
|
(36
|
)
|
||
Net cash used in financing activities
|
(44
|
)
|
|
(73
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
$
|
(54
|
)
|
|
$
|
10
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total
Number of Shares Purchased (a) |
|
Average Price
Paid per Share |
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans (b) |
|
Approximate Dollar
Value of Shares that May Yet Be Purchased Under the Publicly Announced Plans |
||||||
August 4, 2019 - August 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
55,192
|
|
September 1, 2019 - October 5, 2019
|
7,951
|
|
|
|
3.71
|
|
|
—
|
|
|
|
55,192
|
|
October 6, 2019 - November 2, 2019
|
10,175
|
|
|
|
3.52
|
|
|
—
|
|
|
|
55,192
|
|
Total
|
18,126
|
|
|
|
3.60
|
|
|
—
|
|
|
|
|
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
(a)
|
The following documents are filed as exhibits to this Quarterly Report on Form 10-Q:
|
|
Exhibit 3.2
|
|
|
|
|
|
|
|
Exhibit 10.61
|
|
|
|
|
|
|
|
Exhibit 10.62
|
|
|
|
|
|
|
|
Exhibit 10.63
|
|
|
|
|
|
|
|
Exhibit 10.64
|
|
|
|
|
|
|
|
Exhibit 10.65
|
|
|
|
|
|
|
|
Exhibit 10.66
|
|
|
|
|
|
|
|
Exhibit 31.1
|
|
|
|
|
|
|
|
Exhibit 31.2
|
|
|
|
|
|
|
|
Exhibit 32.1
|
|
|
|
|
|
|
|
Exhibit 32.2
|
|
|
|
|
|
|
|
Exhibit 101
|
|
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended November 2, 2019, formatted in Inline XBRL: (i) Condensed Consolidated Statements of (Loss) Income, (ii) Condensed Consolidated Statements of Comprehensive (Loss) Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
|
|
|
|
|
|
Exhibit 104
|
|
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended November 2, 2019, formatted in Inline XBRL (included within Exhibit 101).
|
|
|
|
|
|
|
CHICO'S FAS, INC.
|
|
|
|
|
|
||
Date:
|
November 27, 2019
|
|
|
|
By:
|
/s/ Bonnie R. Brooks
|
|
|
|
|
|
|
Bonnie R. Brooks
|
|
|
|
|
|
|
President, Chief Executive Officer and Director
|
|
|
|
|
|
||
Date:
|
November 27, 2019
|
|
|
|
By:
|
/s/ Todd E. Vogensen
|
|
|
|
|
|
|
Todd E. Vogensen
|
|
|
|
|
|
|
Executive Vice President, Chief Financial Officer and Assistant Corporate Secretary
|
|
|
|
|
|
|
|
Date:
|
November 27, 2019
|
|
|
|
By:
|
/s/ David M. Oliver
|
|
|
|
|
|
|
David M. Oliver
|
|
|
|
|
|
|
Senior Vice President - Finance, Controller and Chief Accounting Officer
|
1 Year Chicos FAS Chart |
1 Month Chicos FAS Chart |
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