Chico’s FAS, Inc. (NYSE:CHS) Q2 2023 Earnings Call Transcript

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Janet Kloppenburg: Would you say that overall for Chico’s and White House that there was a trend. I heard you talk a lot about the silhouettes but is there a trend back towards casual after this sort of catch-up on dress up and where to work?

Molly Langenstein: No. I’m not seeing it defined as casual or dressy. It’s really the proportional change that’s happening. So she’s buying disproportion change both for dress up career as well as we’re seeing embellished items and things that have three dimensions. So I’m not seeing it in a bucket of casual or career. It’s really just a proportion shift, Janet, that we’re seeing, which is great.

Janet Kloppenburg: So do you think that balance of casual to dress up maybe you could give me sort of a historical outlook on that because we know that dress up got very strong last year and how do you see it this year compared to last year?

Molly Langenstein: Yes. I think most important is the ability to be able to have versatility in the wardrobe. And I think a woman today wants all of her pieces to be able to be multi duty. And we try to show that expression in our marketing that here’s a great new wide leg and here’s how it looks with a fantastic booty. Here’s how you can wear with a fantastic sneaker or here’s what it looks like with a strappy heel and how that same item can translate into many multiple wearing occasions. And that to me is the most important to get that versatility across the consumers. And then it’s not a one single-use item, but it is items that can be worn across. So if you want to dress it up, you can with accessories or heels. If you want to address it down, you can do the same thing by taking off some accessories or changing your shoes. So that’s our focus to be able to make sure that we’re taking care of all of her wearing occasions.

Janet Kloppenburg: Okay, great. Thanks so much.

Molly Langenstein: Thank you Janet.

Operator: Thank you. This concludes our question-and-answer session. I will now turn the call back over to Molly Langenstein for closing remarks.

Molly Langenstein: Thank you. And before I close, I’d like to thank our outstanding stores team for continuing to drive loyalty and create memorable experiences. I also want to thank our digital team and our technology teams for their incredible tenacity and dedication as they work to replatform each of our digital sites, which will position us for long-term growth. We continue to deliver strong results and generate meaningful cash flow. We believe we are well positioned for the fall season and are beginning to see a trend change in our business, our steadfast focus on our brand strategy, and our four strategic pillars give us confidence in achieving our long-term financial targets and further enhancing our operating performance, strengthening our balance sheet, and increasing shareholder value. Thank you for your interest and time. We look forward to speaking with you again during our third quarter conference call.

Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.

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