Chico’s FAS catalog and web sales continue upward

Direct-to-consumer sales have grown steadily, if modestly, at women’s apparel retail chain Chico’s FAS over the past three years, according to the company’s recent presentation for investors and analysts. In 2004, consumer-direct sales were $26.8 million, representing 2.5% of all sales. In 2005, which saw the August launch of White House | Black Market and Soma Intimates web sites, direct sales reached $36.2 million, or 2.6% of all sales. And in 2006, direct sales reached $53.5 million, 3.2% of total sales.

For the first quarter of 2007, Chico’s reported catalog and web sales of $16.5 million, representing 3.6% of overall sales of $453 million. Chico’s FAS is No. 228 in the Internet Retailer Top 500 Guide.

About 60% of Chico’s consumer-direct sales come from the web and the rest from its catalog/call center, says Charles J. Kleman, executive vice president and CFO. The company`s first-quarter filing with the Securities and Exchange Commission noted that the increase in consumer-direct sales is attributable to two factors: first, the implementation of web site and call center infrastructure improvements and, second, web merchandising.

More attention to the direct channels is in the offing, as Chico’s “intends to continue making improvements to such infrastructure and merchandising approaches in an effort to further promote sales through these channels,” the company says.

Chico’s operates 953 women’s specialty stores, including stores in 48 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Stores operate under the Chico’s, White House | Black Market and Soma Intimates names.

Total year-to-date sales for the 22-week period ended July 7 increased 12.2% to $768 million from $684 million reported for the same period in 2006.