Chico’s net income drops on higher sales

Fort Myers, Fla. – Chico’s FAS reported declining net income during the third quarter of fiscal 2013 even as net sales grew. Net income totaled $35.8 million, down 15% from $42 million in the same period a year earlier.

For the third quarter, net sales were $655.6 million, an increase of 3% compared to $636.7 million in the prior year's third quarter, primarily reflecting 115 net new stores. Same-store sales decreased 1.4%, which Chico’s said primarily reflects the cycling of strong same-store sales last year and the impact of lower traffic.

Pre-tax, non-cash goodwill and trade name impairment charges of $72.5 million resulting from recent sales declines in the Boston Proper catalog business impacted net income results.

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