Gross profit for the quarter was $196.4 million, or 38.9 per cent of net sales. This represents a decrease compared to last year's third quarter, which saw a gross profit of $207.4 million, or 40.0 per cent of net sales. The 110-basis-point decrease in gross margin is mainly attributed to higher occupancy costs and a deleverage effect on the back of lower net sales, the company said in a media release.
Chico's FAS reported a diluted earnings per share (EPS) of $0.04 for the quarter. When adjusted, the diluted EPS stands at $0.11. This figure provides insight into the company's profitability on a per-share basis, considering both the reported and adjusted figures.
Additionally, the company's selling, general, and administrative expenses were $178.6 million for the third quarter, which is 35.4 per cent of net sales. This is an increase from the third quarter of the previous year, where these expenses were $175.8 million or 33.9 per cent of net sales. This rise signifies a higher proportion of operating costs relative to the company's net sales.
"We delivered third quarter results in line with our outlook," said Molly Langenstein, Chico's FAS chief executive officer and president. "Our results reflect our team's continued execution on our four strategic pillars of customer led, product obsessed, digital first, and operationally excellent."
ALCHEMPro News Desk (DP)
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