Feeling the heat from an activist inventory, Chico’s FAS Inc. will increase its cost-cutting efforts on the heels of a disappointing first quarter.
The women’s apparel retailer reported a profit of $31.1 million, or 23 cents a share, for the quarter ended April 30, down from $32.5 million, or 22 cents a share, a year earlier. Excluding restructuring-related charges and other items, adjusted per-share earnings fell to 25 cents from 30 cents.
Net sales fell 7.9% to $643 million. Excluding the Boston Proper division, which Chico’s sold in January, sales fell 4.4%. Same-store sales fell 4.2%.
