Chico’s FAS saw third-quarter net income plunge amid lower sales across the clothing retailer’s three major segments.
Net income plummeted 79.5 per cent from last year to $5 million as the group’s sales declined 2.5 per cent to $505.1 million.
Sales of the Chico’s brand slid 1.2 per cent to $252.2 million and of White House Black Market by 6.3 per cent to $147.5 million. Soma brand’s sales fell 0.1 per cent to $105.4 million.
Moving forward, the company is set to be acquired by Sycamore Partners, with that deal expected to be finalized by the first calendar quarter of next year.
“We are excited about the next chapter in our company’s future with the pending acquisition by Sycamore Partners. We believe they will provide Chico’s FAS with additional expertise, financial resources, and strategic flexibility to further fuel our growth,” said Molly Langenstein, CEO at Chico’s FAS.
“Our commitment to providing solutions, building communities, and creating memorable experiences to bring women confidence and joy is shared by Sycamore Partners. We look forward to working with them to unlock Chico’s FAS’s full potential.”
