Chico's Scales Back Store-Growth Plans for 2008

NEW YORK CITY-Chico’s FAS is reducing its store-expansion plans to 10% total sf growth this year, down from its normal 12% to 15% annual growth due to a challenging sales environment, management said here at Cowen & Co.’s annual consumer conference. “While business remains challenging, it doesn’t make sense to maintain a high level of store growth,” said Kent Kleeberger, the company’s CFO.

Same-store sales at Chico’s fell 13.7% year over year last month. Executives are also forecasting a loss of 14 cents to 16 cents a share during the fourth quarter, down from a 10-cent gain during the prior year’s fourth quarter.