Chico’s Q2 tops forecast; to sell one of its divisions

Fort Myers, Fla. – Chico’s FAS Inc. on Wednesday released better-than-expected second quarter sales and earnings and also announced it was selling off its Boston Proper specialty women’s apparel business.



Earlier this year, the retailer launched a turnaround plan that includes closing some 120 stores through February 2017, cutting jobs and reducing spending.



Chico’s plans to sell the direct-to-consumer portion of Boston Proper for an unspecified sum to an unidentified buyer and close all 20 Boston Proper stores. Chico’s acquired the catalog and online brand in 2011, and opened the first physical Boston Proper store in 2013.



On the chain’s quarterly conference call, CEO Dave Dyer said store performance of Boston Proper had not met company expectations.



Net income fell 93% to $2.1 million in the quarter ended Aug. 1, down from $30.1 million in the same period a year earlier, hampered by impairment and restructuring charges related to Boston Proper.



Net sales equaled $680.4 million, an increase of 1.4%, compared to $671.1 million.



Total company same-store sales rose 0.5%, with 0.9% growth at Chico’s, a 1.9% decline at White House | Black Market and 5.1% growth at Soma.