Useful Links

RetireeRobert · 11-08-2007, 10:25 PM

Did some stock screening, and on my list came up Chico's FAS, a chain clothing store.

Not really being into fashion, I wonder what shoppers think of this place.

The stock was down to $11+ today and "seems" screaming cheap.

Comments?

Sue J · 11-08-2007, 11:23 PM

My 55 year old sister is a Chico's fan and she loved it so much that she bought the stock. She's not a terribly knowledgeable investor but she seems pleased with it.

She and I were in Sanibel Island, FL in June and that's where the original Chico's store is. Of course, we had to go see it. I had never been in one but she knew exactly what she was after. She's an "Elite" customer which gave her free shipping to send the stuff home so she didn't have to pack it for the plane.

I thought the clothes were lovely. Nice simple styles, well made, a little more upscale than I shop for myself, perfect for her. Things are coordinated in style sections and it's easy to mix and match things nearby. She knew the prices and clothes well enough to know what's on sale or reduced.

The sizing is different than I had seen before. Instead of sizes like 8-16 or S M L, they size as 0,1,2 or 3. I don't know how that matches up with normal sizes. It was just different.

It's her favorite store. And our mom shops there, too.

Moemg · 11-09-2007, 06:01 AM

Chico's markets to the older baby boomers .Our stores are always packed . Their customer service is great and their jewelry and clothes are unique .They did bring out a lingerie line which was way overpriced and I never see any of it being purchased . My sister & I both shop there .

RetireeRobert · 11-09-2007, 09:50 AM

Quote:

Originally Posted by Moemg

Chico's markets to the older baby boomers .Our stores are always packed . Their customer service is great and their jewelry and clothes are unique .They did bring out a lingerie line which was way overpriced and I never see any of it being purchased . My sister & I both shop there .

So, except for the lingerie pricing, customers like the place? Do they often sale price out slow moving lines?

FinanceDude · 11-09-2007, 10:03 AM

Customers like the place........they don't cater to the young crowd necessarily.........

The one in time here is ALWAYS running sales,I think they're running the Kohl's Department Stores playbook.......

I recall Peter Lynch found a lot of "nuggets" tagging along when his wife and daughters went to the mall..........Bath and Body Works and The Limited come to mind as "ten-baggers" he found out about.........

Danny · 11-09-2007, 10:19 AM

Robert - I have looked at them of late and owned them in the past - I would be wary until you see some solid same store sales (6 s words in a row!) increases again. Here's a story at Marketwatch that goes into a little detail.

Right now I'm in Christopher Banks (CBK) which just had a stellar October.

Moemg · 11-09-2007, 10:31 AM

Quote:

Originally Posted by RetireeRobert

So, except for the lingerie pricing, customers like the place? Do they often sale price out slow moving lines?

Their customers are mostly older baby boomers and they love the place .A little pricey but very trendy and great jewelry .Frequent sales and good customer service !

RetireeRobert · 11-09-2007, 11:05 AM

Quote:

Originally Posted by Danny

Robert - I have looked at them of late and owned them in the past - I would be wary until you see some solid same store sales (6 s words in a row!) increases again. Here's a story at Marketwatch that goes into a little detail.

Their same store sales decline % does give me pause. I saw a story yesterday of appearal retailers, and Chicos had the second biggest sales decline among a dozen or so listed.

On the other hand, Chicos has no debt, and strong financials otherwise.
How much worse can their sales comparisons get/how much lower can the stock go? (if I knew, I be rich!). I don't see them heading for bankruptcy.
And their stock is on sale now. And they seem to have a resreve of satisfied customers who may spend more "next year".

On the other hand, Labor Ready (LRW---temporary help firm) is also on sale now and has perhaps slightly more solid financials and no bad year-to-year comparison.

I have a finite amount of free cash for investment, so choices, choices, choices.

Moemg · 11-09-2007, 02:47 PM

Their used to be only a handful of Chico's now they are everywhere maybe they over expanded . Plus after awhile all their clothes look the same I have a few Chico's outfits and that's enough .

Achiever51 · 11-09-2007, 04:45 PM

I owned CHS a few years ago and made a nice profit on it. I bought it first at $17.30 and sold most of it at $40; then bought it again at $32 and finally sold it all at $48. I bought it because I was very impressed with the Gralnicks, the husband and wife who started the company in the early 80s and served as Chair and President until '06. While they headed up the firm, the stock just went up and up. In late '05 IIR, they started selling back their stock and the stock fluctuated all over the place before starting its downward slide.

I think the fundamentals of the company are sound even though the Gralnicks are no longer affiliated with Chico's, but I think they've grown too big from acquisitions and adding so many new stores in a short period of time.

I continue to follow the stock, but do not own it now.

RetireeRobert · 01-07-2008, 10:01 PM

Quote:

Originally Posted by Achiever51

I owned CHS a few years ago and made a nice profit on it. I bought it first at $17.30 and sold most of it at $40; then bought it again at $32 and finally sold it all at $48. I bought it because I was very impressed with the Gralnicks, the husband and wife who started the company in the early 80s and served as Chair and President until '06. While they headed up the firm, the stock just went up and up. In late '05 IIR, they started selling back their stock and the stock fluctuated all over the place before starting its downward slide.

I think the fundamentals of the company are sound even though the Gralnicks are no longer affiliated with Chico's, but I think they've grown too big from acquisitions and adding so many new stores in a short period of time.

I continue to follow the stock, but do not own it now.

Chico's FAS stock now down to $7.79. It has no debt, and seems to be still a viable business.Too early to buy, or is it on fire sale?