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Chico's FAS (CHS)

Chico's knows its customers, that's for sure. The apparel chain, which caters to middle-aged women, sells its original designs in just four sizes: 0, 1, 2, and 3. And it doesn't outfit its dressing rooms with mirrors, meaning customers trying on clothes have to step out for a look-see -- where they find a sales rep holding accessories that would go well with that skirt. Chico's formula continues to work: Profits rose an average 42.5% annually over the past three years on an average 38% yearly increase in sales, a performance aided in small part by its 2004 acquisition of White House/Black Market, another women's boutique chain. Shares of Chico's have risen from just above $10 in spring 2004 to just under $50 in February. But the stock has since slid back to $30, after Chico's missed its first-quarter earnings estimates by a penny. An expensive miss, indeed.

Company Info

2005 Rank

15

Market Value*
($ Millions)

6,734.8

Sales*
($ Millions)

1,404.6

Sales Growth
(3-yr. avg. annual)

38.3 %

Profits*
($ Millions)

194.0

Profit Growth
(3-yr. avg. annual)

42.5 %

Return on Inv. Capital (3-yr.)

24.8 %

Share Price
12-Mo. Hi/Lo

49/26

Share Price
As of 4/28/06

37

Return on Equity

24.1 %

P/E Ratio

35

No. of Employees

11,000

Industry Apparel Retail
CURRENT
MARKET INFO

CHS >

COMPANY WEB SITE >
Location Fort Myers, Fla.
Phone 239 277-6200
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Chico's FAS operates as a retailer of private label, casual-to-dressy clothing, intimates, complementary accessories, and other nonclothing gift items. The company offers its products under the Chico's, White House|Black Market (WH|BM), Soma by Chico's, and Fitigues brand names. The Chico's brand includes clothing focused on women who are 35 years old and over. The Chico's brand clothing is made from natural fabrics and fabric blends, as well as synthetics and synthetic blends. The WH|BM brand focuses on women who are 25 years old and over. Its offerings include clothing made from various natural and synthetic fabrics, including cotton, rayon, silk, polyester, microfibers, and matte jersey in white and black, and related shades. The Chico's and the WH|BM brands also comprise accessories, such as handbags; belts; and jewelry, such as earrings, watches, necklaces, and bracelets. The Soma by Chico's brand includes bras, panties, and shapewear, as well as activewear, sleepwear, robes, and loungewear. The Fitigues brand offers clothing that are made from natural fabrics, such as cotton and cashmere. As of Mar. 17, 2006, the company operated 784 retail stores in 47 states, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. Chico's FAS also sells its products through a catalog, a small franchise network, and the Internet. The company was founded in 1983 and has its headquarters in Fort Myers, Fla.


Data provided by Capital IQ
 
Scott A. Edmonds

Scott A. Edmonds, 48

Chief Executive Officer, President and Director


Total Compensation*

$ 3,955,593

Total Options Value*

$ 20,608,958

* Fiscal Year 2005


Executive Bio

Scott Edmonds has been a director of Chico's FAS since January, 2004. Edmonds has been CEO of Chico's since September, 2003, and president since September, 2001. He had served as chief operating officer of Chico's since February, 2000. He has been employed by Chico's since September, 1993, when he was hired as operations manager. In addition to his general responsibilities as president, Edmonds is responsible for product development and production, marketing, human resources, store development and operations, store leasing and maintenance, franchise operations, and management of the general headquarters activities. Prior to joining Chico's, Edmonds was employed by Ferguson Enterprises, a plumbing and electrical wholesale company, which he joined in 1980.


Management Team

Key Executives

Scott Edmonds; Patricia Murphy Kerstein; Mike Kincaid; Gary King; Charlie Kleman; Michael Leedy; Mori MacKenzie; Chuck Nesbit; Patricia Darrow Smith

Board Directors

Stewart P. Mitchell; Betsy S. Atkins; Marvin J. Gralnick; Charles J. Kleman; Scott A. Edmonds; Helene B. Gralnick; John W. Burden; Verna K. Gibson; Ross E. Roeder; Mic Weiss


Executive Data provided by Capital IQ