001-16435 | 59-2389435 | |
(Commission File Number) | (IRS Employer Identification No.) |
11215 Metro Parkway, Fort Myers, Florida | 33966 | |
(Address of Principal Executive Offices) | (Zip code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits: |
Exhibit 99.1 | Press Release of Chico’s FAS, Inc. dated November 25, 2014 |
CHICO’S FAS, INC. | ||||||
Date: November 25, 2014 | By: | |||||
/s/ Todd E. Vogensen | ||||||
Todd E. Vogensen, Senior Vice President, Chief Financial Officer |
Exhibit Number | Description | |
Exhibit 99.1 | Press Release of Chico’s FAS, Inc. dated November 25, 2014 |
Thirty-Nine Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | ||||||||||||||||||||||||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||
Chico’s/Soma Intimates | $ | 1,290,239 | 63.9 | % | $ | 1,255,214 | 63.5 | % | $ | 418,230 | 62.9 | % | $ | 415,819 | 63.4 | % | |||||||||||
White House | Black Market | 655,639 | 32.5 | % | 643,688 | 32.6 | % | 224,552 | 33.7 | % | 218,200 | 33.3 | % | |||||||||||||||
Boston Proper | 72,426 | 3.6 | % | 76,902 | 3.9 | % | 22,787 | 3.4 | % | 21,560 | 3.3 | % | |||||||||||||||
Total net sales | 2,018,304 | 100.0 | % | 1,975,804 | 100.0 | % | 665,569 | 100.0 | % | 655,579 | 100.0 | % | |||||||||||||||
Cost of goods sold | 920,148 | 45.6 | % | 868,808 | 44.0 | % | 301,776 | 45.3 | % | 291,569 | 44.5 | % | |||||||||||||||
Gross margin | 1,098,156 | 54.4 | % | 1,106,996 | 56.0 | % | 363,793 | 54.7 | % | 364,010 | 55.5 | % | |||||||||||||||
Selling, general and administrative expenses | 945,360 | 46.8 | % | 899,689 | 45.5 | % | 321,574 | 48.3 | % | 308,528 | 47.1 | % | |||||||||||||||
Goodwill and trade name impairment charges | — | 0.0 | % | 72,466 | 3.7 | % | — | 0.0 | % | 72,466 | 11.0 | % | |||||||||||||||
Acquisition and integration costs | — | 0.0 | % | 914 | 0.0 | % | — | 0.0 | % | — | 0.0 | % | |||||||||||||||
Income (loss) from operations | 152,796 | 7.6 | % | 133,927 | 6.8 | % | 42,219 | 6.4 | % | (16,984 | ) | (2.6 | )% | ||||||||||||||
Interest income, net | 75 | 0.0 | % | 404 | 0.0 | % | 44 | 0.0 | % | 105 | 0.0 | % | |||||||||||||||
Income (loss) before income taxes | 152,871 | 7.6 | % | 134,331 | 6.8 | % | 42,263 | 6.4 | % | (16,879 | ) | (2.6 | )% | ||||||||||||||
Income tax provision | 56,400 | 2.8 | % | 68,100 | 3.4 | % | 15,800 | 2.4 | % | 11,600 | 1.7 | % | |||||||||||||||
Net income (loss) | $ | 96,471 | 4.8 | % | $ | 66,231 | 3.4 | % | $ | 26,463 | 4.0 | % | $ | (28,479 | ) | (4.3 | )% | ||||||||||
Per share data: | |||||||||||||||||||||||||||
Net income (loss) per common share-basic | $ | 0.63 | $ | 0.41 | $ | 0.17 | $ | (0.18 | ) | ||||||||||||||||||
Net income (loss) per common and common equivalent share–diluted | $ | 0.63 | $ | 0.41 | $ | 0.17 | $ | (0.18 | ) | ||||||||||||||||||
Weighted average common shares outstanding–basic | 148,577 | 156,662 | 148,564 | 155,228 | |||||||||||||||||||||||
Weighted average common and common equivalent shares outstanding–diluted | 149,093 | 157,604 | 149,037 | 155,228 | |||||||||||||||||||||||
Dividends declared per share | $ | 0.225 | $ | 0.165 | $ | — | $ | — |
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 67,172 | $ | 36,444 | $ | 52,524 | |||||
Marketable securities, at fair value | 124,042 | 116,002 | 197,235 | ||||||||
Inventories | 294,234 | 238,145 | 267,430 | ||||||||
Prepaid expenses and other current assets | 52,062 | 50,698 | 55,835 | ||||||||
Total Current Assets | 537,510 | 441,289 | 573,024 | ||||||||
Property and Equipment, net | 641,187 | 631,050 | 635,284 | ||||||||
Other Assets: | |||||||||||
Goodwill | 171,427 | 171,427 | 171,427 | ||||||||
Other intangible assets, net | 114,927 | 118,196 | 119,269 | ||||||||
Other assets, net | 12,897 | 9,229 | 9,252 | ||||||||
Total Other Assets | 299,251 | 298,852 | 299,948 | ||||||||
$ | 1,477,948 | $ | 1,371,191 | $ | 1,508,256 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | 162,641 | $ | 131,254 | $ | 152,698 | |||||
Other current and deferred liabilities | 145,972 | 142,073 | 121,796 | ||||||||
Total Current Liabilities | 308,613 | 273,327 | 274,494 | ||||||||
Noncurrent Liabilities: | |||||||||||
Deferred liabilities | 146,715 | 138,874 | 143,991 | ||||||||
Deferred taxes | 42,306 | 49,887 | 53,338 | ||||||||
Total Noncurrent Liabilities | 189,021 | 188,761 | 197,329 | ||||||||
Stockholders’ Equity: | |||||||||||
Preferred stock | — | — | — | ||||||||
Common stock | 1,529 | 1,522 | 1,588 | ||||||||
Additional paid-in capital | 401,110 | 382,088 | 372,325 | ||||||||
Retained earnings | 577,528 | 525,381 | 662,375 | ||||||||
Accumulated other comprehensive income | 147 | 112 | 145 | ||||||||
Total Stockholders’ Equity | 980,314 | 909,103 | 1,036,433 | ||||||||
$ | 1,477,948 | $ | 1,371,191 | $ | 1,508,256 |
Thirty-Nine Weeks Ended | |||||||
November 1, 2014 | November 2, 2013 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 96,471 | $ | 66,231 | |||
Adjustments to reconcile net income to net cash provided by operating activities — | |||||||
Goodwill and trade name impairment charges | — | 72,466 | |||||
Depreciation and amortization | 90,514 | 88,123 | |||||
Deferred tax (benefit) expense | (9,204 | ) | 6,024 | ||||
Stock-based compensation expense | 20,041 | 19,542 | |||||
Excess tax benefit from stock-based compensation | (1,654 | ) | (1,281 | ) | |||
Deferred rent and lease credits | (13,754 | ) | (13,299 | ) | |||
Loss on disposal and impairment of property and equipment | 757 | 1,432 | |||||
Changes in assets and liabilities: | |||||||
Inventories | (56,089 | ) | (60,581 | ) | |||
Prepaid expenses and other assets | (5,032 | ) | (1,775 | ) | |||
Accounts payable | 31,387 | 23,311 | |||||
Accrued and other liabilities | 27,655 | (25,087 | ) | ||||
Net cash provided by operating activities | 181,092 | 175,106 | |||||
Cash Flows From Investing Activities: | |||||||
Purchases of marketable securities | (81,134 | ) | (90,669 | ) | |||
Proceeds from sale of marketable securities | 73,062 | 165,852 | |||||
Purchases of property and equipment, net | (98,084 | ) | (113,376 | ) | |||
Net cash used in investing activities | (106,156 | ) | (38,193 | ) | |||
Cash Flows From Financing Activities: | |||||||
Proceeds from issuance of common stock | 5,930 | 10,176 | |||||
Excess tax benefit from stock-based compensation | 1,654 | 1,281 | |||||
Dividends paid | (34,329 | ) | (26,536 | ) | |||
Repurchase of common stock | (17,579 | ) | (126,179 | ) | |||
Net cash used in financing activities | (44,324 | ) | (141,258 | ) | |||
Effects of exchange rate changes on cash and cash equivalents | 116 | 10 | |||||
Net increase (decrease) in cash and cash equivalents | 30,728 | (4,335 | ) | ||||
Cash and Cash Equivalents, Beginning of period | 36,444 | 56,859 | |||||
Cash and Cash Equivalents, End of period | $ | 67,172 | $ | 52,524 |
Thirty-Nine Weeks Ended | Thirteen Weeks Ended | ||||||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | ||||||||||||
Numerator | |||||||||||||||
Net income (loss) | $ | 96,471 | $ | 66,231 | $ | 26,463 | $ | (28,479 | ) | ||||||
Net income and dividends declared allocated to participating securities | (2,648 | ) | (1,785 | ) | (745 | ) | — | ||||||||
Net income (loss) available to common shareholders | $ | 93,823 | $ | 64,446 | $ | 25,718 | $ | (28,479 | ) | ||||||
Denominator | |||||||||||||||
Weighted average common shares outstanding – basic | 148,577 | 156,662 | 148,564 | 155,228 | |||||||||||
Dilutive effect of non-participating securities | 516 | 942 | 473 | — | |||||||||||
Weighted average common and common equivalent shares outstanding – diluted | 149,093 | 157,604 | 149,037 | 155,228 | |||||||||||
Net income (loss) per common share*: | |||||||||||||||
Basic | $ | 0.63 | $ | 0.41 | $ | 0.17 | $ | (0.18 | ) | ||||||
Diluted | $ | 0.63 | $ | 0.41 | $ | 0.17 | $ | (0.18 | ) |
Chico’s FAS, Inc. and Subsidiaries | ||||||||||||||||
GAAP to Non-GAAP Reconciliation of Net Income (Loss) and Diluted EPS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||||
Net income (loss): | ||||||||||||||||
GAAP basis | $ | 96,471 | $ | 66,231 | $ | 26,463 | $ | (28,479 | ) | |||||||
Add: Impact of goodwill and trade name impairment charges, net of tax | — | 64,266 | — | 64,266 | ||||||||||||
Add: Impact of acquisition and integration costs, net of tax | — | 577 | — | — | ||||||||||||
Non-GAAP adjusted basis | $ | 96,471 | $ | 131,074 | $ | 26,463 | $ | 35,787 | ||||||||
Net income (loss) per diluted share: | ||||||||||||||||
GAAP basis | $ | 0.63 | $ | 0.41 | $ | 0.17 | $ | (0.18 | ) | |||||||
Add: Impact of goodwill and trade name impairment charges, net of tax | 0.00 | 0.40 | 0.00 | 0.40 | ||||||||||||
Add: Impact of acquisition and integration costs, net of tax | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Non-GAAP adjusted basis | $ | 0.63 | $ | 0.81 | $ | 0.17 | $ | 0.22 |
Chico's FAS, Inc. and Subsidiaries | ||||||||||||||
Store Count and Square Footage | ||||||||||||||
Thirteen Weeks Ended November 1, 2014 | ||||||||||||||
(Unaudited) | ||||||||||||||
As of 8/2/14 | New Stores | Closures | As of 11/1/14 | |||||||||||
Store count: | ||||||||||||||
Chico’s frontline boutiques | 620 | 3 | (2 | ) | 621 | |||||||||
Chico’s outlets | 115 | 3 | — | 118 | ||||||||||
Chico's Canada | — | 3 | — | 3 | ||||||||||
WH|BM frontline boutiques | 441 | 8 | (3 | ) | 446 | |||||||||
WH|BM outlets | 63 | 4 | — | 67 | ||||||||||
WH|BM Canada | 4 | 1 | — | 5 | ||||||||||
Soma frontline boutiques | 254 | 10 | (1 | ) | 263 | |||||||||
Soma outlets | 17 | — | — | 17 | ||||||||||
Boston Proper frontline boutiques | 11 | 6 | — | 17 | ||||||||||
Total Chico’s FAS, Inc.* | 1,525 | 38 | (6 | ) | 1,557 | |||||||||
As of 8/2/14 | New Stores | Closures | Other changes in SSF | As of 11/1/14 | ||||||||||
Net selling square footage (SSF): | ||||||||||||||
Chico’s frontline boutiques | 1,692,561 | 8,283 | (5,398 | ) | (758 | ) | 1,694,688 | |||||||
Chico’s outlets | 288,979 | 7,201 | — | — | 296,180 | |||||||||
Chico's Canada | — | 7,313 | — | — | 7,313 | |||||||||
WH|BM frontline boutiques | 1,003,679 | 19,923 | (5,893 | ) | 891 | 1,018,600 | ||||||||
WH|BM outlets | 130,709 | 8,978 | — | — | 139,687 | |||||||||
WH|BM Canada | 10,051 | 2,409 | — | — | 12,460 | |||||||||
Soma frontline boutiques | 479,185 | 19,024 | (1,923 | ) | 823 | 497,109 | ||||||||
Soma outlets | 31,672 | — | — | — | 31,672 | |||||||||
Boston Proper frontline boutiques | 18,276 | 10,871 | — | — | 29,147 | |||||||||
Total Chico’s FAS, Inc. | 3,655,112 | 84,002 | (13,214 | ) | 956 | 3,726,856 |
Chico's FAS, Inc. and Subsidiaries | ||||||||||||||
Store Count and Square Footage | ||||||||||||||
Thirty-Nine Weeks Ended November 1, 2014 | ||||||||||||||
(Unaudited) | ||||||||||||||
As of 2/1/14 | New Stores | Closures | As of 11/1/14 | |||||||||||
Store count: | ||||||||||||||
Chico’s frontline boutiques | 611 | 14 | (4 | ) | 621 | |||||||||
Chico’s outlets | 110 | 10 | (2 | ) | 118 | |||||||||
Chico's Canada | — | 3 | — | 3 | ||||||||||
WH|BM frontline boutiques | 436 | 17 | (7 | ) | 446 | |||||||||
WH|BM outlets | 59 | 8 | — | 67 | ||||||||||
WH|BM Canada | 3 | 2 | — | 5 | ||||||||||
Soma frontline boutiques | 232 | 33 | (2 | ) | 263 | |||||||||
Soma outlets | 17 | 1 | (1 | ) | 17 | |||||||||
Boston Proper frontline boutiques | 4 | 13 | — | 17 | ||||||||||
Total Chico’s FAS, Inc.* | 1,472 | 101 | (16 | ) | 1,557 | |||||||||
As of 2/1/14 | New Stores | Closures | Other changes in SSF | As of 11/1/14 | ||||||||||
Net selling square footage (SSF): | ||||||||||||||
Chico’s frontline boutiques | 1,672,225 | 36,246 | (10,942 | ) | (2,841 | ) | 1,694,688 | |||||||
Chico’s outlets | 278,223 | 24,294 | (6,337 | ) | — | 296,180 | ||||||||
Chico's Canada | — | 7,313 | — | — | 7,313 | |||||||||
WH|BM frontline boutiques | 986,708 | 43,611 | (15,338 | ) | 3,619 | 1,018,600 | ||||||||
WH|BM outlets | 121,565 | 18,122 | — | — | 139,687 | |||||||||
WH|BM Canada | 7,987 | 4,473 | — | — | 12,460 | |||||||||
Soma frontline boutiques | 441,387 | 60,411 | (3,607 | ) | (1,082 | ) | 497,109 | |||||||
Soma outlets | 32,682 | 1,445 | (2,346 | ) | (109 | ) | 31,672 | |||||||
Boston Proper frontline boutiques | 6,003 | 23,144 | — | — | 29,147 | |||||||||
Total Chico’s FAS, Inc. | 3,546,780 | 219,059 | (38,570 | ) | (413 | ) | 3,726,856 |