A select assortment of the brand’s apparel and accessories will be available on the Amazon site beginning in mid-May. The curated assortment will include its Travelers, Zenergy ath-leisure and So Slimming pants collections.
All Chico’s merchandise purchased on Amazon.com would be eligible for Amazon Prime, as well as free shipping and returns. Chico’s said it would maintain control of marketing, pricing and promotions connected with its Amazon store.
Shelley Broader, chief executive officer of Chico’s FAS, said, “Chico’s FAS will be one of the few vertically integrated specialty retailers with Prime eligibility on Amazon.com, which is a testament to the strength of our iconic brands and their growth potential.”
The company said that as the new business channel gains traction, additional Chico’s merchandise “will likely be made available.” The company did not rule out the possibility of broadening its collaboration to include its other brand lines — White House | Black Market and Soma‚ to the Amazon site down the road.
Chico’s said that because the new sales channel is so new, it doesn’t expect the business to be material to the company’s 2018 financial results.
The women’s specialty chain in February posted fourth-quarter net income results that more than doubled to $28 million, or 22 cents a diluted share, from $13.5 million, or 10 cents, a year ago. The quarter’s results included the favorable impact of the Tax Cuts and Jobs Act of 2017. Sales in the quarter slipped 2.2 percent to $587.8 million from $600.8 million, while comparable sales fell 5.2 percent due mostly to lower average dollar sale and a flat transaction count.
Broader said at the time that the results reflect the company’s progress in the execution of its strategic initiatives. Yet sales at the core Chico’s brand were essentially flat, while sales at White House | Black Market fell 6.9 percent. The company did see a sales gain of 1.8 percent at its intimates brand Soma.