Chico's Outlines Strategic Plan
New York City Chico's FAS Inc. on Thursday outlined its plan to improve results, including improving its merchandise selection and slowing real estate growth, according to the Associated Press.
Chico's outlined the plan in a statement following its annual shareholder meeting.
The company plans to improve the "fit, fabric and quality" of its clothes. At the same time, it plans to slow real estate square-footage growth until the weak retail environment improves, the report said.
It also plans to tighten control on inventory, and cut expenses and capital expenditures.
Also during the meeting, the shareholders re-elected three directors, ratified an amended stock and incentive plan, and appointed Ernst & Young LLP as its independent public accountant for the fiscal year ending Jan. 31, 2009.
Chico's FAS Inc. has suffered as consumers cut back spending amid a rising cost of living and declining home values, the report said.
In May, Chico's reported its first-quarter profit dropped 73% as sales of its core apparel brand dropped and expenses increased. Revenue fell 10% to $409.6 million.