US-based fashion company Chico’s has generated $545.1m in net sales in the second quarter (Q2) of fiscal year (FY) 2023, down 2.4% from $558.7m in the same period of FY22.
For the thirteen weeks to 29 July 2023, the retailer’s comparable sales decreased 3.0% from the prior year, driven by a decrease in transaction count.
Chico’s reported net income of $59.3m in Q2 FY23, compared to $42.0m in the same period a year ago.
Its earnings per diluted share for the quarter were $0.49, against $0.34 in Q2 FY22.
The company’s gross profit for the quarter was $216.9m, accounting for 39.8% of net sales, against $231.5m in the same period a year ago.
Chico’s FAS chief executive officer and president Molly Langenstein said: “We delivered another quarter of strong operating income and earnings performance, which was consistent with our outlook.
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“For all three brands, full-priced sales remained healthy, we attracted new customers and we gained market share. Total Company average dollar spend and units per transaction increased and we increased average unit retail at Chico’s and Soma.
“Our apparel customers continued to buy head-to-toe dressing and responded to new proportions in sportswear and our intimates customers responded to new strapless and unlined bra launches.”
In the third quarter of fiscal 2023, Chico’s expects consolidated net sales of $505m to $525m and EPS of $0.08 to $0.12.
For FY23, a 53-week year, the retailer expects consolidated net sales of $2.14bn to $2.17bn and a gross margin rate as a percent of net sales of 38.5% to 38.8%.
It also expects EPS of $0.87 to $0.95 during the year.
Chico’s had a network of 1,25US stores as of the quarter’s ender.
The retailer also distributes merchandise through 58 international franchise locations in Mexico.