Chico’s FAS, Inc. (NYSE:CHS) Q3 2022 Earnings Call Transcript

Page 2 of 2

As ability to be able to chase, we do as most do in terms of platforming fabric and dyeing basic color so that we can chase bodies and get things half made. And we’ve also moved some production to be more near shore in this hemisphere to be able to tighten some time. But it’s still not the chase that I think most of us in the industry would like to have at this time.

Marni Shapiro : That’s fair. And then can I just follow up on Soma for one second. You guys are leading and have led as far as your customer service, but also things like StyleConnect. Are you — are your Chico’s and White House sales associates using those kinds of tools to also sell her into Soma, even if it’s just digitally to get her familiar with the brand to raise brand awareness? Because it feels like from the outside looking, the brand awareness for Soma is still very low, and while the trend has moved away from sleepwear we all know that. I’m thinking just bigger picture, the opportunity is still really there and your foundations business is good. Are you using your banner stores to prop — send customers there?

Molly Langenstein: Yes is the simple answer. A change that we did earlier this year is that we combined the management of all three brands in the stores organization so that we have very tight geographical areas of management and that has allowed us to really work as an FAS team. And they are one team that promotes — both Chico’s and White House promote each other’s brand as well as Soma. What’s to come next year is that the re-platform that we have in place will allow us to actually have a universal cart so that when you check out, you will be able to put Soma in the apparel checkout. And that will come later in the year with the re-platform. So there’s a lot more good things on the horizon being able to leverage Soma, to be in every Chico’s and White House Black Market basket.

Marni Shapiro : Best of luck for holiday. I will take the rest offline, but congratulations, the stores are absolutely stunning.

Operator: And thank you. This concludes our question-and-answer session. I’d like to turn the conference back over Molly Langenstein for any closing remarks.

Molly Langenstein : Thank you. Our results and momentum validate that our pillars are fueling our strategy. We are customer-led, product-obsessed, digital-first, operationally excellent company with a portfolio of three unique brands on a clear path for continued profitable growth. We are on track to achieving our three year plan and generating meaningful shareholder value. Before I close, let me take a minute to say a few words about our Fort Myers headquarters and the impact of Hurricane Ian on our associates and community. First and foremost, our concern was for the safety and wellbeing of our associates, and thankfully all of our associates are safe. We created an employee assistance fund supported by the company, along with the generosity of our associates, Board members, business partners, and that eased the financial burden of reconstruction and losses incurred by many of our associates.

24 hours after the storm, our corporate campus became the host for over 3,000 Florida Power & Light men and women, and a distribution hub for Red Cross volunteers who tirelessly work to serve our community. Lastly, we have four damaged stores that remain closed, including our original Chico’s Sanibel store. We will rebuild. We are a resilient company, surviving and thriving during COVID and emerging stronger in the third quarter post Hurricane Ian. This is because of our amazing associates and their tenacity, action and true sense of collaboration during difficult times. Thank you to our teams for making a difference. Have a wonderful Thanksgiving and holiday season, and thank you for your interest and time. We look forward to speaking with you again during our year end conference call in February.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines at this time.

Follow Chico's Fas Inc. (NYSE:CHS)

Page 2 of 2