FORT MYERS, Fla., June 7, 2021 /PRNewswire/ -- Chico's FAS, Inc.
(NYSE: CHS) (the "Company" or "Chico's FAS") today issued the
following statement regarding the press release and letter issued
by The Barington Group ("Barington"):
Chico's FAS has ongoing
conversations with its shareholders, including Barington, to
discuss the Company's strategy and operating plans and appreciates
the input it receives.
The Company is making tremendous
progress in its turnaround strategy to become a digital-first,
customer-led company. This work, which commenced in the third
quarter of 2019, was showing significant traction prior to the
pandemic. In addition, actions taken over the last 18 months to
reduce costs and strengthen the Company's balance sheet provide a
strong financial foundation to invest and grow for the foreseeable
future.
Chico's FAS looks forward to
sharing more about the Company's progress on its first quarter 2021
results tomorrow.
We look forward to continuing to
engage with all of our shareholders, including Barington, about
this work and the execution of our transformation strategy. We are
committed to taking all appropriate actions to improve performance
and drive shareholder value.
ABOUT CHICO'S FAS,
INC.
Chico's FAS is a Florida-based
fashion company founded in 1983 on Sanibel Island, Fla. The Company
reinvented the fashion retail experience by creating fashion
communities anchored by service, which put the customer at the
center of everything we do. As one of the leading fashion retailers
in North America, Chico's FAS is a
company of three unique brands - Chico's, WHBM and Soma - each
thriving in their own white space, founded by women, led by women,
providing solutions that millions of women say give them confidence
and joy.
Our Company has a passion for fashion, and each day, we provide
clothing, shoes and accessories, intimate apparel and expert
styling in our brick-and-mortar boutiques, digital online boutiques
and through Style Connect, the Company's proprietary digital
styling tool that enables customers to conveniently shop wherever,
whenever and however they prefer.
As of January 30, 2021, the
Company operated 1,302 stores in the U.S. and sold merchandise
through 68 international franchise locations in Mexico and 2 domestic franchise airport
locations. The Company's merchandise is also available at
www.chicos.com, www.chicosofftherack.com, www.whbm.com,
www.soma.com and www.mytelltale.com as well as through third-party
channels.
For more detailed information on the Company, please visit our
corporate website at www.chicosfas.com. The information on our
corporate website is not, and shall not be deemed to be, a part of
this press release or incorporated into our federal securities law
filings.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This press release contains statements
that constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The
statements, including without limitation the quote from Ms.
Langenstein and the sections captioned "Business Highlights" and
"Fiscal 2021 Outlook," relate to expectations and projections
regarding the Company's future performance and may include the
words "anticipate," "believe," "could," "estimate," "expect,"
"intend," "may," "will," "plan," "outlook," "project," "should,"
"strategy," "potential," "confident" and similar terms. These
forward-looking statements are based largely on information
currently available to our management and on our current
expectations, assumptions, plans, estimates, judgments and
projections about our business and our industry, and are subject to
risks and uncertainties that could cause actual results to differ
materially from historical results or those expressed or implied by
such forward-looking statements. Although we believe our
expectations are based on reasonable estimates and assumptions,
there is no assurance that our expectations will, in fact, occur or
that our estimates or assumptions will be correct, and we caution
investors and all others not to place undue reliance on such
forward-looking statements. Factors that could cause actual results
to differ include, but are not limited to: the effects of the
pandemic and uncertainties about its depth and duration, new
variants of pandemic that have emerged, and the speed and efficacy
of vaccine and treatment developments, as well as the impacts to
general economic conditions and the economic slowdown affecting
consumer behavior and discretionary spending (before and after the
pandemic) and any temporary store restrictions (including reduced
hours or capacity) due to government mandates; the effectiveness of
store reopenings, cost reduction initiatives (including our ability
to effectively restructure our lease portfolio to obtain future
rent relief), the extent, availability and effectiveness of any
pandemic stimulus packages or loan programs, including the CARES
Act, the ability of our third-party business partners, including
our suppliers, logistics providers, vendors and landlords, to meet
their obligations to us in light of financial stress, staffing
shortages, liquidity challenges, bankruptcy filings by other
industry participants and other disruptions due to the pandemic,
the impact of the pandemic on our manufacturing operations in
China, and trends in consumer
behavior and spending during and after the end of the pandemic; our
ability to successfully implement any alternatives that we pursue
including our ability to achieve the cost savings described in this
release; government actions and policies; increases in unemployment
rates and taxes; local, regional, national and international
economic conditions; changes in the general economic and business
environment; changes in the general or specialty retail or apparel
industries, including the extent of the market demand and overall
level of spending for women's private branded clothing and related
accessories; future permanent store closures; the effectiveness of
our brand strategies, awareness and marketing programs; the ability
to successfully execute and achieve the expected results of our
business strategies and particular strategic initiatives
(including, but not limited to, the Company's organizational
restructure and five fiscal 2021 operating priorities which are:
continuing our ongoing digital transformation; further refining
product through fit, quality, assortment, fabric and innovation;
driving increased customer engagement through marketing;
maintaining our operating and cost discipline; and further
enhancing the productivity of our real estate portfolio), sales
initiatives and multi-channel strategies; customer traffic; our
ability to appropriately manage our inventory and allocation
processes; our ability to leverage inventory management and
targeted promotions; the successful recruitment of leadership and
the successful transition of members of our senior management team;
uncertainties regarding future unsolicited offers to buy the
Company and our ability to respond effectively to them as well as
to actions of activist shareholders and others; changes in the
political environment that create consumer uncertainty; the risk
that our investments in merchandise or marketing initiatives may
not deliver the results we anticipate; significant changes to
product import and distribution costs (such as unexpected
consolidation in the freight carrier industry, and the ability to
remain competitive with customer shipping terms and costs
pertaining to product deliveries and returns); new or increased
taxes or tariffs that could impact, among other things, our
sourcing from foreign suppliers; the risk that future legislation
may prohibit certain imports from China; and significant shifts in consumer
behavior. Other risk factors are detailed from time to time in the
Company's Quarterly Reports on Form 10-Q, Annual Report on Form
10-K and other reports filed with the Securities and Exchange
Commission. These factors should be considered in evaluating
forward–looking statements contained herein. There can be no
assurance that the actual future results, performance, or
achievements expressed or implied by such forward-looking
statements will occur. The Company does not undertake to publicly
update or revise its forward-looking statements even if experience
or future changes make it clear that projected results expressed or
implied in such statements will not be realized.
Contacts
For Investors:
Tom
Filandro
ICR, Inc.
(646) 277-1235
tom.filandro@icrinc.com
For Media:
Barrett
Golden / Leigh Parrish
Joele Frank, Wilkinson Brimmer
Katcher
(917) 612-4489 / (917) 282-8908
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SOURCE Chico’s FAS, Inc.