Dive Brief:
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Chico’s had a mixed Q1, with profits falling 18% due to restructuring costs as well as sluggish sales.
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Same-store sales dropped .1%, though revenue rose 1.7% to $693.3 million.
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The flagship brand struggled the most, with the retailer’s White House, Black Market brand seeing a sales rise of 3.4% and its Soma intimates brand seeing sales rise 13%.
Dive Insight:
Chico’s has been closing stores and laying off workers since a potential sale to private-equity firm Sycamore Partners fell through earlier this year. Last week, CEO David Dyer announced his retirement, which has led to speculation that potential for a sale might be reignited. Regardless, the retailer must continue to make changes, at least at its flagship brand, to appeal to the women who apparently are now passing it by at the mall.