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Chico’s to close up to 16% of remaining stores over the next three years

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Chico’s FAS Inc.
CHS,
+0.39%

stock sank 6.5% in early Tuesday trading after the women’s clothing and accessories retailer reported deeper-than-expected quarterly losses and a sales miss. Net losses totaled $79.1 million, or 68 cents per share, after a loss of $4.3 million, or 4 cents per share, last year. Sales totaled $386.2 million, down from $527.1 million. The FactSet consensus was for a loss of 32 cents and sales of $448.0 million. Same-store sales sank 24.9%, with the namesake brand down 34.4%, White House Black Market down 36% and the Soma underwear, loungewear and swim brand up 15.2%. Total digital sales for the quarter were up nearly 20%, with Soma digital sales up 68%. Chico’s expects to add Soma shops in 50 Chico’s boutiques in 2021, and plans to close 13% to 16% of the company’s remaining stores over the next three fiscal years with 40 to 45 closures in 2021. Most are expected to be mall-based Chico’s and White House Black Market locations. As of January 30, Chico’s had 1,302 stores in the U.S. Chico’s stock has rallied 40.3% over the last three months, but is down 37.2% over the past year. The S&P 500 index
SPX,
-0.52%

is up 26.2% for the last 12 months.

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