Women’s specialty chain Chico’s FAS Inc.’s collaboration with Amazon is “progressing nicely,” but it wasn’t enough to prevent a slide in second-quarter sales.
The Fort Myers, Fla.-based company started selling its core Chico’s brand through the retail giant’s site in May and reported Wednesday that its first Prime Day was “highly successful.”
“Our collaboration with Amazon.com is progressing nicely and we have achieved results in line to slightly ahead of our and Amazon’s expectations. We had our first Prime Day, which was highly successful,” Chico’s chief executive officer Shelley Broader said on a call with investors.
Nevertheless, the company reported net income of $16.8 million, or 13 cents per diluted share, in the second quarter, compared to $22.7 million, or 18 cents, a year earlier. Net sales, meanwhile, were $544.7 million, down from $578.6 million.
This was above the FactSet consensus for earnings per share of 12 cents and sales of $541 million.
“Second-quarter results were in line with our expectations, reflecting momentum on our top-line initiatives,” added Broader. “New merchandise assortments are resonating with customers, and innovative advancements to our robust omnichannel platform are driving increased customer awareness and reactivation. We remain confident in the opportunities across our brands for profitable growth and value creation.”
Chico’s also revealed that its core brand had joined forces with another Baby Boomers’ brand — NYDJ, formerly Not Your Daughter’s Jeans — to launch a denim collection in mid-October, with sizes ranging from 0 to 18.
“Our research identified a significant overlap with our existing target demographic and those that love the NYDJ brand. So, we view this as a unique opportunity to excite our current customer and to introduce a host of new customers to our brand,” Broader said.
Shares in the company, whose two other brands are White House|Black Market and Soma, were down more than 4 percent to close at $8.47 in trading on Wednesday.