US fashion brand Chico`s FAS expects over $2.5 bn revenue by FY24

Fashion

US fashion brand Chico`s FAS expects over $2.5 bn revenue by FY24

30 Mar `22

2 min read

Chico's FAS, Inc., a US fashion company, has announced its three-year financial targets expecting over $2.5 billion of revenue by fiscal 2024 (FY24). Its digital revenue is expected to reach more than $1 billion for the same period, along with its gross margin rate of 40 per cent, equating to 330 basis points of expansion from fiscal 2021.

Chico's FAS also expects an operating margin of 7.5 per cent by FY24, a 380-basis point improvement from fiscal 2021, the company said in a media release. Moreover, it forecasts its earnings per share (EPS) growth representing a compound annual growth rate (CAGR) of 15+ per cent from fiscal 2021; and generation of approximately $400 million of cumulative cash flow from operations in the next three years.

The fashion company also affirmed its outlook for first quarter (Q1) of fiscal 2022 (FY22), wherein it expects consolidated net sales of $485 million to $500 million; gross margin rate as a per cent of net sales of 36.9 per cent to 37.7 per cent; selling, general and administrative (SG&A) expenses as a per cent of net sales of 33.9 per cent to 34.3 per cent; effective income tax rate of 20 per cent; and earnings per diluted share of $0.07 to $0.11.

Chico`s FAS, Inc., a US fashion company, has announced its three-year financial targets expecting over $2.5 billion of revenue by fiscal 2024 (FY24). Its digital revenue is expected to reach more than $1 billion for the same period, along with its gross margin rate of 40 per cent, equating to 330 basis points of expansion from fiscal 2021.#

For the fiscal 2022 full year the company forecasts a consolidated net sales of $2,085 million to $2,115 million; gross margin rate as a per cent of net sales of 36.7 per cent to 37.2 per cent; SG&A expenses as a per cent of net sales of 32.8 per cent to 33.2 per cent; effective income tax rate of 26 per cent; earnings per diluted share of $0.40 to $0.50; and capital and cloud-based expenditures of approximately $65 million to $70 million.

"We have aggressively pursued our turnaround strategy which began in 2019. Today, we are well ahead of our plan and positioned to build on our momentum and further accelerate our growth. We have three powerful brands – Chico's FAS, White House Black Market and Soma – each growing faster than the market average and with tremendous future market share opportunities. Our unique brands, paired with our proven business model, experienced leadership team, values-centred culture and strong balance sheet are a winning formula for driving long-term shareholder value," Molly Langenstein, Chico's FAS chief executive officer and president, commented.

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