Chico's Q2 profit soars 42%, announces purchase of Boston Proper
Fort Myers, Fla. -- Chico’s FAS reported Wednesday that its profit for the second quarter surged 42% to $43.4 million, up from $30.5 million a year earlier. Revenue rose 18% to $551.4 million, topping Wall Street’s expected $536.3 million, and same-store sales increased 12.8%. By brand, same-store sales were up 11.9% at Chico and Sonoma Intimates, and comps were up 14.9% at White House | Black Market.
Capping the positive performance news, Chico’s also said Wednesday that it has made a deal to acquire Boston Proper Inc. for $205 million cash.
The Boca Raton, Fla.-based Internet and catalog women’s apparel retailer is thought to be a good fit for Chico’s. “Boston Proper's brand focus is highly complementary to our existing brands' customer experience, adds significant volume to our direct-to-consumer channel and provides us new opportunities to grow market share,” said David Dyer, CEO and president, Chico’s FAS.
The transaction is expected to close in about 45 days. Boston Proper will operate as a stand-alone division within Chico’s FAS.