Ex-99.1 August 25, 2005 Press Release

For Immediate Release


		Executive Contacts:
		Charles J. Kleman		F. Michael Smith
		Chief Financial Officer		Vice President
		Chico’s FAS, Inc.		Investor and Community Relations
		(239) 274-4105		Chico’s FAS, Inc.
				(239) 274-4797

Chico’s FAS, Inc. Announces Record Second Quarter and
Six Month Revenues and Earnings

•

Second quarter net income up 38.4% to a record $49 million

•

Revenues rose 31.0% to a record $670 million for the six months

•

Six months net income climbed 35.3% to a record $96 million

•

August comparable store sales currently in the low double digit range

•

Company announces fiscal 2006 store opening plans

Fort Myers, FL — August 25, 2005 — Chico’s FAS, Inc. (NYSE: CHS) ) today announced its financial results for the second quarter and six months ended July 30, 2005.

Net sales for the second quarter ended July 30, 2005, increased 34.6% to a record $343 million from $255 million for the second quarter ended July 31, 2004. Net income rose 38.4% to $49 million, or $0.27 a diluted share, compared to net income of $35 million, or $0.20 a diluted share (as adjusted for the 2 for 1 stock split in February 2005) in the prior year's second quarter. Comparable store sales for the Company-owned stores increased 15.7% for the thirteen-week period ended July 30, 2005 compared to the same thirteen-week period last year.

For the six months ended July 30, 2005, net sales increased 31.0% to a record $670 million from $512 million for the prior year's six months ended July 31, 2004. Net income rose 35.3% to $96 million, or $0.53 a diluted share, compared to net income of $71 million, or $0.40 a diluted share (as adjusted for the 2 for 1 stock split in February 2005) in the prior period. Comparable store sales for the Company-owned stores increased 13.2% for the twenty-six week period compared to the same twenty-six week period last year.

The Company also announced that it is planning to open approximately 20% net new square footage combined for the Chico's and White House | Black Market brands in fiscal 2006, taking into account approximately 105 to 120 net new Company-owned stores and increased square footage from 30-40 relocations and/or expansions. It is currently anticipated that new Chico's and White House | Black Market stores in 2006, for the most part, will be somewhat larger than the average existing store size for the respective brand. Currently, the Company plans that approximately 60% of these new stores will be Chico's stores, with the balance being White House | Black Market stores.

In addition, the Company also announced that it plans to open 20 new Soma by Chico's stores during fiscal 2006 over and above the combined 20% net square footage growth rate outlined above for the Chico's and White House | Black Market brands. The Company anticipates that additional investment will be required to establish the Soma by Chico's brand

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as an acceptable business meeting the profitability goals of the Company over the longer term. The Company believes the Soma by Chico's brand reduced the Company's operating margin by approximately 60 to 70 basis points for the second quarter of fiscal 2005 and the Company anticipates this will not change significantly in fiscal 2006 even considering the additional new stores planned. The Company further believes that an impact on margin of this order is acceptable when balanced against the possibility of its longer term growth potential.

Scott A. Edmonds, President and CEO, commented, "The second quarter came in with very strong results as we generated an operating margin in excess of 22%, a sales increase of 35%, and a net income increase of over 38%. Second quarter gross margins for the core Chico's brand were somewhat off from last year's gross margins while White House | Black Market's gross margins were up 270 basis points on a quarter over quarter basis. Looking at the potential third quarter results, we are pleased with our same store sales trends thus far in August. Overall, we are experiencing same store sales in the low double digit range, with the Chico's brand in the high single digits range and the White House | Black Market brand again experiencing much stronger same store sales up in the mid 40% range. We are seeing initial strong front-line gross margins from our Fall lines and we anticipate that Chico's front-line stores will generate third quarter gross margins in the range of last year's record setting gross margins and that White House | Black Market's gross margins will continue to make significant improvement. Despite these expectations, we are anticipating an overall gross margin decline in the third quarter similar to that experienced in the second quarter. The lower gross margin is expected to be principally due to lower gross margins in the outlet division as it anniversaries its highest gross margins in history from last year and returns to more normalized outlet gross margins."

The Company is a specialty retailer of private label, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items. The Company operates 713 women's specialty stores, including stores in 47 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico operating under the Chico's, White House | Black Market and Soma by Chico's names. The Company owns 477 Chico's front-line stores, 27 Chico's outlet stores, 181 White House | Black Market front-line stores, 5 White House | Black Market outlet stores and 10 Soma by Chico's stores; franchisees own and operate 13 Chico's stores.

Certain statements contained herein, including without limitation, statements addressing the beliefs, plans, objectives, estimates or expectations of the Company or future results or events constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known or unknown risks, including, but not limited to, general economic and business conditions, and conditions in the specialty retail industry. There can be no assurance that the actual future results, performance, or achievements expressed or implied by such forward-looking statements will occur. Users of forward-looking statements are encouraged to review the Company's latest annual report on Form 10-K, its filings on Form 10-Q, management's discussion and analysis in the Company's latest annual report to stockholders, the Company's filings on Form 8-K, and other federal securities law filings for a description of other important factors that may affect the Company's business, results of operations and financial condition. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that projected results expressed or implied in such statements will not be realized.

For more detailed information, please call (877) 424-4267 to listen to the Company’s monthly
sales information and investor relations line

A copy of a slide show addressing the Company’s recent financial results and current plans
for expansion is available on the Company’s website at http://www.chicos.com in the
investor relations section

Additional investor information on Chico’s FAS, Inc. is available free of charge on the Company’s
website at http://www.chicos.com in the investor relations section

(Financial Tables Follow)

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Chico’s FAS, Inc.
Consolidated Balance Sheets
(in thousands)


	July 30,			January 29,
	2005			2005
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	15,741		$	14,426
Marketable securities, at market		334,815			251,199
Receivables		6,744			5,106
Inventories		79,153			73,223
Prepaid expenses		14,614			9,429
Deferred taxes		13,981			11,184

*Total Current Assets*		465,048			364,567


Property and Equipment:
Land and land improvements		6,264			6,055
Building and building improvements		32,300			29,286
Equipment, furniture and fixtures		161,275			140,360
Leasehold improvements		184,714			166,096

*Total Property and Equipment*		384,553			341,797
Less accumulated depreciation and amortization		(113,667	)		(93,834	)

*Property and Equipment, Net*		270,886			247,963


Other Assets:
Goodwill		61,796			61,796
Other intangible assets		34,087			34,042
Other assets, net		18,019			7,361

*Total Other Assets*		113,902			103,199

	$	849,836		$	715,729


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	38,230		$	36,725
Accrued liabilities		69,688			58,258
Current portion of deferred liabilities		433			332

*Total Current Liabilities*		108,351			95,315


Noncurrent Liabilities:
Deferred liabilities		52,850			47,149
Deferred taxes		6,363			12,397

*Total Noncurrent Liabilities*		59,213			59,546


Stockholders’ Equity:
Common stock		1,807			1,790
Additional paid-in capital		176,882			147,652
Unearned compensation		(4,045	)		–
Retained earnings		507,867			411,556
Accumulated other comprehensive loss		(239	)		(130	)

*Total Stockholders’ Equity*		682,272			560,868

	$	849,836		$	715,729

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Chico’s FAS, Inc.
Consolidated Statements of Income
(Unaudited)
(in thousands, except per share amounts)


	Twenty-Six Weeks Ended								Thirteen Weeks Ended
	July 30, 2005				July 31, 2004				July 30, 2005				July 31, 2004
			% of				% of				% of				% of
	Amount		Sales		Amount		Sales		Amount		Sales		Amount		Sales
Net sales by Chico’s/Soma stores	$	539,071		80.4	$	432,341		84.5	$	271,466		79.2	$	213,852		83.9
Net sales by White House / Black Market stores		111,095		16.6		62,825		12.3		61,932		18.1		32,827		12.9
Net sales by catalog & Internet		14,992		2.2		12,412		2.4		7,035		2.0		6,330		2.5
Net sales to franchisees		5,022		0.8		3,980		0.8		2,492		0.7		1,758		0.7

Net sales		670,180		100.0		511,558		100.0		342,925		100.0		254,767		100.0

Cost of goods sold		261,627		39.0		195,037		38.1		136,429		39.8		98,082		38.5

Gross profit		408,553		61.0		316,521		61.9		206,496		60.2		156,685		61.5

General, administrative and store operating expenses		239,330		35.7		188,799		36.9		120,056		35.0		92,994		36.5
Depreciation and amortization		19,853		3.0		13,701		2.7		10,482		3.0		6,924		2.7

Income from operations		149,370		22.3		114,021		22.3		75,958		22.2		56,767		22.3
Interest income, net		3,504		0.5		753		0.1		1,994		0.6		484		0.2

Income before taxes		152,874		22.8		114,774		22.4		77,952		22.7		57,251		22.5
Income tax provision		56,563		8.4		43,613		8.5		28,841		8.4		21,755		8.6

Net income	$	96,311		14.4	$	71,161		13.9	$	49,111		14.3	$	35,496		13.9


Per share data:
Net income per common share–basic⁽¹⁾	$	0.54			$	0.40			$	0.27			$	0.20


Net income per common & common equivalent share–diluted⁽¹⁾	$	0.53			$	0.40			$	0.27			$	0.20


Weighted average common shares outstanding–basic⁽¹⁾		180,007				177,756				180,410				178,572


Weighted average common & common equivalent shares outstanding–diluted⁽¹⁾		181,867				179,967				182,292				180,379


		⁽¹⁾ Prior year amounts restated to give effect to the 2 for 1 stock split in February 2005

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