US fashion brand Chico’s FAS is expecting $ 2.5 billion in FY24

Chico’s FAS, Inc., a US fashion company, has announced its three-year financial target, which is expected to generate 2.5 billion in revenue by fiscal year 2024 (FY24). Its digital revenue is expected to reach more than $ 1 billion for the same period, with a gross margin rate of 40 percent, equivalent to 330 basis points of expansion from FY2021.

Chico’s FASO expects an operating margin of 7.5 percent in FY24, an improvement of 380-basis points from FY2021, the company said in a media release. Furthermore, it forecasts earnings per share (EPS) growth that represents a compounded annual growth rate (CAGR) of 15+ percent from FY2021; And the production of about $ 400 million in growing cash flow from operations over the next three years.

The fashion company also confirmed its outlook for the first quarter (Q1) of fiscal year 2022 (FY22), where it expects consolidated net sales of $ 485 million to $ 500 million; Total margin rates range from 36.9 percent to 37.7 percent as a percentage of net sales; Sales, General and Administrative (SG&A) expenses as a percentage of net sales from 33.9 percent to 34.3 percent; The effective income tax rate is 20 percent; And dilute earnings per share ranging from $ 0.07 to $ 0.11.

Chico’s FAS, Inc., a US fashion company, has announced its three-year financial target, which is expected to generate 2.5 billion in revenue by fiscal year 2024 (FY24). Its digital revenue is expected to reach more than $ 1 billion for the same period, with a gross margin rate of 40 percent, equivalent to 330 basis points of expansion from FY2021.

The company forecasts consolidated net sales of 2,085 million to $ 2,115 million for the full fiscal year 2022; Gross margin rate as a percentage of net sales from 36.7 percent to 37.2 percent; SG&A spending as a percentage of net sales from 32.8 percent to 33.2 percent; The effective income tax rate is 26 percent; Dilute earnings per share from $ 0.40 to $ 0.50; And about $ 65 million to $ 70 million in capital and cloud-based spending.

“We aggressively pursue our transformation strategy that began in 2019. Today, we are well ahead of our plan and positioned to build our momentum and accelerate our growth. We have three strong brands – Chico’s FAS, White House.” Black Market and Soma – each with unprecedented opportunities for fast-growing and future market share from market averages. Our proven business model, experienced leadership team, value-oriented culture and strong balance sheet make our unique brands a winning formula for long-term shareholder value. ” Molly Langenstein, FAS CEO and President of ChicoCommented.

Fibre2Fashion News Desk (SF)