EX-99.3 4 ex993bpreconciliation.htm EXHIBIT 99.3 Exhibit
Exhibit 99.3

The Company has historically presented store occupancy expenses, shipping expenses and shipping revenue within selling, general and administrative expenses ("SG&A"). Beginning in the first quarter 2016, the Company will present store occupancy expenses and shipping expenses within cost of goods sold and will present shipping revenue within net sales. Management believes the presentation excluding the Boston Proper brand, which was sold in the fourth quarter of fiscal 2015, may provide a more meaningful measure on which to compare the Company's results of operations between periods. The tables below present a reconciliation of selected consolidated financial data on a GAAP basis to selected consolidated financial data on a non-GAAP adjusted basis, when excluding Boston Proper and reflecting the adjustments discussed above.

1


Chico's FAS, Inc. and Subsidiaries
Fiscal 2015 Reconciliation of Reported to Adjusted Selected Non-GAAP Consolidated Financial Data
(Unaudited)
(in thousands)
 
As Reported
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 2, 2015
 
August 1, 2015
 
October 31, 2015
 
January 30, 2016
 
 
January 30, 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
693,339

 
100.0
 %
 
$
680,351

 
100.0
 %
 
$
641,219

 
100.0
 %
 
$
627,400

 
100.0
 %
 
 
$
2,642,309

 
100.0
 %
Cost of goods sold
297,569

 
42.9

 
314,383

 
46.2

 
290,737

 
45.3

 
308,863

 
49.2

 
 
1,211,552

 
45.9

Gross margin
395,770

 
57.1

 
365,968

 
53.8

 
350,482

 
54.7

 
318,537

 
50.8

 
 
1,430,757

 
54.1

Selling, general and administrative expenses
328,217

 
47.3

 
308,437

 
45.3

 
327,575

 
51.1

 
318,356

 
50.7

 
 
1,282,585

 
48.5

Subtotal
67,553

 
9.8

 
57,531

 
8.5

 
22,907

 
3.6

 
181

 
0.1

 
 
148,172

 
5.6

 
Boston Proper
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 2, 2015
 
August 1, 2015
 
October 31, 2015
 
January 30, 2016
 
 
January 30, 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
23,780

 
100.0
 %
 
$
24,209

 
100.0
 %
 
$
17,312

 
100.0
 %
 
$
15,671

 
100.0
 %
 
 
$
80,972

 
100.0
 %
Cost of goods sold
13,301

 
55.9

 
13,286

 
54.9

 
11,486

 
66.3

 
11,790

 
75.2

 
 
$
49,863

 
61.6

Gross margin
10,479

 
44.1

 
10,923

 
45.1

 
5,826

 
33.7

 
3,881

 
24.8

 
 
$
31,109

 
38.4

Selling, general and administrative expenses
14,866

 
62.5

 
14,163

 
58.5

 
11,466

 
66.2

 
11,394

 
72.7

 
 
$
51,889

 
64.1

Subtotal
(4,387
)
 
(18.4
)
 
(3,240
)
 
(13.4
)
 
(5,640
)
 
(32.5
)
 
(7,513
)
 
(47.9
)
 
 
(20,780
)
 
(25.7
)
 
Adjustments, excluding Boston Proper
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 2, 2015
 
August 1, 2015
 
October 31, 2015
 
January 30, 2016
 
 
January 30, 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales(1)
$
2,909

 
0.4
 %
 
$
3,381

 
0.5
 %
 
$
2,828

 
0.4
 %
 
$
3,131

 
0.5
 %
 
 
$
12,249

 
0.5
 %
Store occupancy expense(2)
93,286

 
13.4

 
95,272

 
13.9

 
95,583

 
14.8

 
95,601

 
15.2

 
 
379,742

 
14.3

Shipping expense(3)
7,919

 
1.1

 
7,875

 
1.2

 
7,710

 
1.2

 
8,923

 
1.4

 
 
32,427

 
1.2

Cost of goods sold
101,205

 
14.5

 
103,147

 
15.1

 
103,293

 
16.0

 
104,524

 
16.6

 
 
412,169

 
15.5

Gross margin
(98,296
)
 
(14.1
)
 
(99,766
)
 
(14.6
)
 
(100,465
)
 
(15.6
)
 
(101,393
)
 
(16.1
)
 
 
(399,920
)
 
(15.0
)
Selling, general and administrative expenses
(98,296
)
 
(14.1
)
 
(99,766
)
 
(14.6
)
 
(100,465
)
 
(15.6
)
 
(101,393
)
 
(16.1
)
 
 
(399,920
)
 
(15.0
)
Subtotal

 

 

 

 

 

 

 

 
 

 

 
As Adjusted, Non-GAAP
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 2, 2015
 
August 1, 2015
 
October 31, 2015
 
January 30, 2016
 
 
January 30, 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
672,468

 
100.0
 %
 
$
659,523

 
100.0
 %
 
$
626,735

 
100.0
 %
 
$
614,860

 
100.0
 %
 
 
$
2,573,586

 
100.0
 %
Cost of goods sold
385,473

 
57.3

 
404,244

 
61.3

 
382,544

 
61.0

 
401,597

 
65.3

 
 
1,573,858

 
61.2

Gross margin
286,995

 
42.7

 
255,279

 
38.7

 
244,191

 
39.0

 
213,263

 
34.7

 
 
999,728

 
38.8

Selling, general and administrative expenses
215,055

 
32.0

 
194,508

 
29.5

 
215,644

 
34.4

 
205,569

 
33.4

 
 
830,776

 
32.3

Subtotal
71,940

 
10.7

 
60,771

 
9.2

 
28,547

 
4.6

 
7,694

 
1.3

 
 
168,952

 
6.5


(1) Adjustments to net sales represent the correction of an immaterial error in the classification of shipping revenue, which was previously classified within SG&A.
(2) Adjustments to store occupancy expense represent the reclassification of store occupancy expenses, which were previously classified within SG&A.
(3) Adjustments to shipping expense represent a change in accounting policy to present shipping expenses within cost of goods sold, which were previously presented within SG&A.


2


Chico's FAS, Inc. and Subsidiaries
Fiscal 2014 Reconciliation of Reported to Adjusted Selected Non-GAAP Consolidated Financial Data
(Unaudited)
(in thousands)
 
As Reported
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 3, 2014
 
August 2, 2014
 
November 1, 2014
 
January 31, 2015
 
 
January 31, 2015
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
681,605

 
100.0
 %
 
$
671,130

 
100.0
 %
 
$
665,569

 
100.0
 %
 
$
656,907

 
100.0
 %
 
 
$
2,675,211

 
100.0
 %
Cost of goods sold
298,714

 
43.8

 
319,658

 
47.6

 
301,776

 
45.3

 
328,741

 
50.0

 
 
1,248,889

 
46.7

Gross margin
382,891

 
56.2

 
351,472

 
52.4

 
363,793

 
54.7

 
328,166

 
50.0

 
 
1,426,322

 
53.3

Selling, general and administrative expenses
319,049

 
46.8

 
304,737

 
45.4

 
321,574

 
48.3

 
317,774

 
48.4

 
 
1,263,134

 
47.2

Subtotal
63,842

 
9.4

 
46,735

 
7.0

 
42,219

 
6.4

 
10,392

 
1.6

 
 
163,188

 
6.1

 
Boston Proper
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 3, 2014
 
August 2, 2014
 
November 1, 2014
 
January 31, 2015
 
 
January 31, 2015
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
24,311

 
100.0
 %
 
$
25,328

 
100.0
 %
 
$
22,787

 
100.0
 %
 
$
23,377

 
100.0
 %
 
 
$
95,803

 
100.0
 %
Cost of goods sold
11,959

 
49.2

 
14,112

 
55.7

 
13,406

 
58.8

 
15,978

 
68.3

 
 
$
55,455

 
57.9

Gross margin
12,352

 
50.8

 
11,216

 
44.3

 
9,381

 
41.2

 
7,399

 
31.7

 
 
$
40,348

 
42.1

Selling, general and administrative expenses
14,274

 
58.7

 
13,010

 
51.4

 
13,325

 
58.5

 
12,882

 
55.1

 
 
$
53,491

 
55.8

Subtotal
(1,922
)
 
(7.9
)
 
(1,794
)
 
(7.1
)
 
(3,944
)
 
(17.3
)
 
(5,483
)
 
(23.4
)
 
 
(13,143
)
 
(13.7
)
 
Adjustments, excluding Boston Proper
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 3, 2014
 
August 2, 2014
 
November 1, 2014
 
January 31, 2015
 
 
January 31, 2015
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales(1)
$
2,225

 
0.3
 %
 
$
2,970

 
0.4
 %
 
$
2,719

 
0.4
 %
 
$
3,012

 
0.5
 %
 
 
$
10,926

 
0.4
 %
Store occupancy expense(2)
90,235

 
13.2

 
92,640

 
13.7

 
93,185

 
13.9

 
91,915

 
13.9

 
 
367,975

 
13.7

Shipping expense(3)
7,243

 
1.1

 
7,617

 
1.1

 
7,799

 
1.2

 
8,718

 
1.3

 
 
31,377

 
1.2

Cost of goods sold
97,478

 
14.3

 
100,257

 
14.8

 
100,984

 
15.1

 
100,633

 
15.2

 
 
399,352

 
14.9

Gross margin
(95,253
)
 
(14.0
)
 
(97,287
)
 
(14.4
)
 
(98,265
)
 
(14.7
)
 
(97,621
)
 
(14.7
)
 
 
(388,426
)
 
(14.5
)
Selling, general and administrative expenses
(95,253
)
 
(14.0
)
 
(97,287
)
 
(14.4
)
 
(98,265
)
 
(14.7
)
 
(97,621
)
 
(14.7
)
 
 
(388,426
)
 
(14.5
)
Subtotal

 

 

 

 

 

 

 

 
 

 

 
As Adjusted, Non-GAAP
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 3, 2014
 
August 2, 2014
 
November 1, 2014
 
January 31, 2015
 
 
January 31, 2015
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
659,519

 
100.0
 %
 
$
648,772

 
100.0
 %
 
$
645,501

 
100.0
 %
 
$
636,542

 
100.0
 %
 
 
$
2,590,334

 
100.0
 %
Cost of goods sold
384,233

 
58.3

 
405,803

 
62.5

 
389,354

 
60.3

 
413,396

 
64.9

 
 
1,592,786

 
61.5

Gross margin
275,286

 
41.7

 
242,969

 
37.5

 
256,147

 
39.7

 
223,146

 
35.1

 
 
997,548

 
38.5

Selling, general and administrative expenses
209,522

 
31.8

 
194,440

 
30.0

 
209,984

 
32.5

 
207,271

 
32.6

 
 
821,217

 
31.7

Subtotal
65,764

 
9.9

 
48,529

 
7.5

 
46,163

 
7.2

 
15,875

 
2.5

 
 
176,331

 
6.8


(1) Adjustments to net sales represent the correction of an immaterial error in the classification of shipping revenue, which was previously classified within SG&A.
(2) Adjustments to store occupancy expense represent the reclassification of store occupancy expenses, which were previously classified within SG&A.
(3) Adjustments to shipping expense represent a change in accounting policy to present shipping expenses within cost of goods sold, which were previously presented within SG&A.


3