Chico's store closings will have the company shutting down 250 locations.
The reason for the Chico's (NYSE:CHS) store closings has to do with the company's retail fleet optimization plan. The plan is for the company to continue to keep its current customer base while moving on to new platforms. This includes partnerships with ShopRunner, Amazon (NASDAQ:AMZN) and QVC.
The Chico's store closings is the result of the company looking to put a greater focus on online sales and reducing its physical store count to compensate for this. As such, the company will close down 250 stores over the next three years.
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According to the company, the Chico's store closings taking place over the next three years will allow it to best utilize lease expiration cadence. It will also still let it improve on profitability and return on invested capital.
The Chico's store closings wasn't the only news that the company had to announce today. It also provides an update to its outlook for its fiscal fourth quarter of 2018. The company says it is now expecting net sales for the quarter to be down in the low double digits. The previous guidance was for net sales to be down in the mid-teens during the quarter.
Chico's also gives a date for its fiscal fourth quarter of 2018 earnings report. The company says it will be providing results for the quarter, as well as the fiscal year, on March 6, 2019.
CHS stock was up 6% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
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