| Friday | ||||
Chico's FAS … Chico's FAS announced that its Board of Directors adopted a limited duration shareholder rights plan. Pursuant to the Rights Plan, the company is issuing one right for each share of common stock outstanding at the close of business on April 13. The rights will become exercisable only if an entity, person or group acquires beneficial ownership of 10% or more of the company's common stock, or 20% in the case of certain passive investors. When the rights become exercisable, each holder of a right will be entitled to purchase, at the then-current exercise price (which was initially set at $12 per right), additional shares of common stock having a value of twice the exercise price of the right (a 50% discount). Rights held by any entity, person or group whose actions trigger the Rights Plan, and those of certain related parties, would become void. | ||||
| Over a week ago | ||||
Chico's FAS… Chico's FAS announced the following update relating to the impact of the novel coronavirus pandemic: "As previously disclosed in a Form 8-K filed on March 17, 2020, the company temporarily closed all retail stores in North America for two weeks to protect customers, associates and the communities in which they live and work. At this time, these stores remain closed, and the company has not yet determined when some or all of these stores may reopen. The company plans to continue to operate its e-commerce business, distribution centers and customer call centers, and customers can continue to shop online for each brand... The company is continuing to significantly reduce expenses to lower its operating costs and preserve cash." | ||||
Morgan Stanley analyst… Morgan Stanley analyst Kimberly Greenberger updated her forecasts and analyzed the balance sheets of seven retailers that she called out as having among the highest leverage ratios among the companies she covers - L Brands (LB), Gap (GPS), Macy's (M), PVH Corp. (PVH), Capri Holdings (CPRI), Chico's (CHS) and Hudson (HUD) - given the numerous North America store closure announcements, guidance withdrawals and impacts of broader social isolation initiatives due to the coronavirus outbreak. In addition to traffic and sales pressures, access to refinancing markets looks significantly constrained in the near-term, which could be challenging for companies with debt maturing in the next 12-24 months, Greenberger said. She cut her price target for L Brands shares to $16 from $19, for Gap to $11 from $13, for Macy's to $10 from $13, for PVH to $78 from $112, for Capri to $33 from $39 and for Chico's to $2 from $3. | ||||
Chico's FAS… Chico's FAS announced the temporary immediate closure of all retail stores across North America for the next two weeks to protect customers, associates and the communities in which they live and work. The Company had already taken steps offering remote working arrangements and enhanced safety protocols at their distribution centers and corporate offices. The Company will continue to monitor the rapidly changing COVID-19 developments and is following the guidelines established by public health officials, including the Centers for Disease Control and Prevention. The Company is withdrawing its guidance issued in its Q4 Earnings Release filed on Form 8-K on February 27. The Company is not providing updated guidance at this time. | ||||
| Over a month ago | ||||
This represents the tenth… This represents the tenth annual increase since the dividend was established in 2010. The dividend is payable on March 30 to the company's shareholders of record at the close of business on March 16. | ||||
For FY20: The company… For FY20: The company anticipates a low single-digit increase in total net sales and consolidated comparable sales. The company expects gross margin as a percent of net sales to increase approximately 50 to 100 basis points, due primarily to strategic reductions in promotional depth as well as leverage of fixed costs on higher sales. SG&A expenses are expected to increase approximately $10M, reflecting investments in marketing and a return to target incentive compensation levels, partially offset by ongoing cost management. The company estimates a fiscal 2020 tax expense in the range of $3M-$5M. Capital and cloud-based expenditures are expected to be approximately $45M-$50M, primarily driven by technology enhancements and targeted reinvestments in stores. | |
For Q1: The company… For Q1: The company anticipates a low single-digit increase in total net sales and consolidated comparable sales, reflecting continued progress and momentum in the business. The company expects gross margin as a percent of net sales to increase approximately 20 to 40 basis points, due primarily to strategic reductions in promotional depth as well as leverage of fixed costs on higher sales. SG&A expenses are expected to be approximately flat, reflecting ongoing cost management, offset by investments in marketing and a return to target incentive compensation levels. | |
Reports Q4 revenue… Reports Q4 revenue $527.1M consensus $524.68M. Reports Q4 SSS up 2.2%. | |
Telsey Advisory… Telsey Advisory Management Meetings at 2020 ICR Conference will be held in Orlando on January 13-14. | |
Telsey Advisory… Telsey Advisory Management Meetings at 2020 ICR Conference will be held in Orlando on January 13-14. |