Chico’s FAS also expects an operating profit margin of 7.5% in FY24, an improvement of 380 basis points from FY21, the company said in a media release. Furthermore, the company forecasts earnings per share (EPS) growth corresponding to a compound annual growth rate (CAGR) of 15% from fiscal year 2021; and generate cumulative cash flows of approximately $400 million from operations over the next three years.
The fashion company also confirmed its outlook for the first quarter (Q1) of fiscal year 2022 (FY22), where it expects consolidated net sales of $485 million to $500 million; gross margin as a percentage of net sales from 36.9 percent to 37.7 percent; selling and administrative expenses (SG&A) as a percentage of net sales from 33.9 percent to 34.3 percent; actual income tax rate of 20%; and diluted earnings per share of $0.07 to $0.11.
Chico’s FAS, Inc., an American fashion company, has announced three-year financial goals that project over $2.5 billion in revenue by fiscal year 2024 (FY24). Its digital revenue is expected to hit more than $1 billion in the same period, coupled with a gross margin of 40%, which equates to a 330 basis point expansion from fiscal 2021.
For the full fiscal year 2022, the company forecasts consolidated net sales of $2.085 million to $2.115 million; gross margin as a percentage of net sales from 36.7 percent to 37.2 percent; Selling & administrative expenses as % of net revenue from 32.8% to 33.2%; actual income tax rate 26%; earnings per share diluted from $0.40 to $0.50; and cloud-based capital and spending around $65 million to $70 million.
“We’ve been aggressively pursuing a turnaround strategy since 2019. Today, we’re much ahead of the schedule and positioned to build on momentum and accelerate further. We have three strong brands – Chico’s FAS, White House Black Market and Soma – each of which is growing faster than the market average and has huge market share opportunities in the future. Matching our proven business model, experienced leadership, value-centric culture and strong balance sheet is the winning formula for driving shareholder value long-term , ” Molly Langenstein, Chico FAS executive and presidentcommented.
Fiber2 fashion news desk (SF)
