board of administration
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Board of AdministrationTRANSCRIPT
Safe Harbor Statement
The information in this slide show was prepared as of June 25, 2009
and is not updated after it is presented.
Forward Looking Statements
This presentation contains forward-looking statements.
Such forward-looking statements involve known or unknown risks, including, but not limited to, the financial strength of retailing in particular and the economy in general, our ability to secure and maintain customer acceptance of styles and store concepts, the ability to maintain an appropriate level of inventory, the timeliness and quality of merchandise received from suppliers, the extent and nature of competition in the markets in which we operate, and our ability to grow through new store openings and the buying public's acceptance of any of our new store concepts.
Actual results could differ materially from those projected.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statement is contained in our SEC Form 10-K
Non-GAAP Terms and Definitions
EPS Amounts exclude the impact of 2013 Boston Proper goodwill and trade name impairment charges, fiscal 2013 and 2012 impact of non-recurring acquisition and integration costs, and pre-2012 impairment and restructuring charges. For a reconciliation to GAAP results, please refer to our press releases, dated February 27, 2014 and our prior SEC filings, which are available in the investor relations section of our website at www.chicosfas.com
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Chico’s FAS, Inc. (CHS) is a specialty retailer with a diversified portfolio of brands at various stages of growth targeting female consumers (ages 30 – 65+)• $2.5B Market Capitalization, $2.3B Enterprise Value• $2.6B Revenues, $215 million Operating Income
Chico’s: Comfortable, relaxed fit and modern style. Accessories coordinate for an individualized, outfitted wardrobe.
White House Black Market: Feminine and affordable alternative to designer fashion. Primarily in black and white and seasonal color splashes.
Soma: Lingerie, loungewear and beauty products. Innovative and expertly fit intimate wear – designer quality at affordable prices.
Boston Proper: High-end apparel and accessories. Modern style with a sensuous feel.
Chico’s Brand
Comfortable, relaxed fit and modern style.
Accessories coordinate for an
individualized, outfitted wardrobe.
White House Black Market
Feminine and affordable
alternative to designer fashion. Primarily in black
and white and seasonal color
splashes.
Soma Intimates
Lingerie, loungewear and
beauty products. Innovative and
expertly fit intimate wear – designer
quality at affordable prices.
2013 Consumer Spending Focused on Big Ticket Items
2005
2006
2007
2008
2009
2010
2011
2012
2013
-15%
-10%
-5%
0%
5%
10%
US Census Bureau Industry SalesAnnual Sales Change
Motor Vehicle & Parts DealersFurniture & Home Furnishings StoresBuilding Materials & Garden Supplies DealersWomen's Clothing Stores
CHS Impacted by Macro-Environment
2013 2012
Sales $2.59B $2.58B
Comp Inc / (Dec)
(1.8%) 7.2%
EPS $0.85 $1.09
Over Past 5 Years, Solid Long Term Growth
'08 '09 '10 '11 '12 '13($0.25)
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
($0.03)
$0.44
$0.65
$0.84
$1.09
$0.85
Adjusted EPS *
'08 '09 '10 '11 '12 '13$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$1.6 $1.7
$1.9
$2.2
$2.6 $2.6
Sales
* EPS Amounts exclude the impact of 2013 Boston Proper goodwill and trade name impairment charges, fiscal 2013 and 2012 impact of non-recurring acquisition and integration costs, and pre-2012 impairment and restructuring charges.
18% CAGR
10% CAGR
CHS Real Estate Focused on Smaller-Footprint, Higher Productivity
Chico’s FAS Peer Group*
Sales / Selling Sq Ft ~$650 ~$310
Selling Sq Ft / Store ~2,400 ~5,500
* Peer Group Info: Sales / Sq Ft per BizStats.com. Sq Ft / Store represents average of top 20 peer specialty retailers, based on most recent SEC filings.
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Chico’s FAS Goes InternationalStrong Initial Results in Canada
Canada:• Opened 3 WHBM stores in
Toronto in 2013• All 3 exceeded previous
US Grand Opening records
• 5 additional WHBM Canada stores in 2014
• Opening 4 Chico’s in 2014• Opportunity = 10% of US
Chico’s and WHBM Sales
Mexico:• Chico’s entered Franchise
agreement with Liverpool Department Stores
• First 2 stores and 6 shop-in-shops opening in Spring of 2014
Strategic Use of Cash
DividendsShare
Repurchases
Total
2010 $29M $18M $47M
2011 $34M $183M $217M
2012 $35M $107M $142M
2013 $38M $245M $283M
Total $136M $553M $689M