Chico’s swings to loss in Q3

Fort Myers, Fla. – Chico’s FAS Inc. reported a net loss of $28.5 million in the third quarter of fiscal 2014, compared to net income of $35.8 million in the third quarter of the previous fiscal year and below Wall Street predictions. Non-cash goodwill and trade name impairment charges drove Chico’s into the red.



Sales totaled $665.6 million, an increase of 1.5% compared to $655.6 million. Same-store sales dropped 1.6%.



Todd E. Vogensen, senior VP and CFO of Chico’s, expressed optimism for future performance in his comments.



"In addition to our brand strategies, fiscal discipline is an important driver of value creation,” said Vogensen. “We remain focused on inventory management and ensuring SG&A and capital investments are aligned with meaningful growth opportunities. We are making progress on the initiatives discussed at our analyst day to achieve these objectives and expect the benefits to become more visible in our results over the coming quarters."