This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chico's FAS' CEO Discusses Q2 2012 Results- Earnings Call Transcript

And with that, I will turn it over to Dave.

David Dyer

Great. Thanks Todd and good morning everyone. I’m delighted to announce our terrific second quarter results. We delivered record second quarter sales and the highest second quarter earnings per share in the Company’s history. All in all, we beat our expectations for the quarter. Earnings per share – up 28% on top of a 47% increase last year. Comparable sales – up 5.6% for a two-year stack of 18.4%. Gross margin – up 30 basis points on top of 40 basis points last year. SG&A – leverage of 60 basis points on top of 190 basis point leverage last year, and inventories down 6%, excluding Boston Proper.

Our unique trend right merchandise and innovative marketing drove significant achievements in the second quarter, including a double-digit increase in new customers, a higher penetration of full-price sales, and increases in both average dollar sales and transactions. These results demonstrate superb team execution. We delivered another quarter of strong growth in 2012 against our toughest quarterly comparison from last year in a much more challenging economic environment.

After adding up the record results for both first and second quarters, I’m pleased to see that we’re updating our planning assumptions for fiscal 2012, which Pam will review with you shortly.

Today with these consolidated results as a backdrop, I’d like to take just a few minutes to highlights our successes by brand. Let’s start with Chico’s Soma. Comparable sales performance increased 7.2% on top of 11.9% last year for one of the industry’s leading two-year stacks of 19%. Turning to Chico’s, we’re clearly winning with color, print and pattern. Our compelling trend right merchandise drove strong sales and gross margin conversion as we successfully cycled last year’s results. Despite this year’s more promotional competitive environment, Chico’s experienced strong full-price selling.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.04 -47.82 -0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,809.2320 -29.4110 -0.61%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs