Chico's FAS, Inc Reports 1st Quarter Results.

FORT MYERS, Fla:

Sales improving as stores open and gain traction

63% of stores now open; 80% of fleet open by Friday

Double-digit increase in digital sales during the April closure period

Significant actions taken in Q1 to mitigate the financial impact of the COVID-19 pandemic and improve liquidity

Chico's FAS, Inc. (NYSE: CHS) (the "Company") today announced its financial results for the fiscal 2020 first quarter ended May 2, 2020.

Bonnie Brooks, Chief Executive Officer and President, Chico's FAS said: "We want to thank our dedicated associates for their commitment and agility in meeting the needs of our customers during the pandemic. As the impact of COVID-19 on the retail industry became apparent, we took immediate actions to safeguard the health and well-being of our people and communities while simultaneously preserving the financial stability of the Company.

During the temporary closure of our 1,341 boutiques across North America and in becoming a digital-only business for most of the quarter, the Company drove an even greater level of customer engagement. We entered into Q1 with strong positive comp sales to the end of February that continued the strong momentum built in fall 2019. During the first quarter and now into the second, we have strengthened the Company's liquidity and substantially reduced expenses and cash burn. We are now halfway through the second quarter with an improved financial foundation and focused on accelerating the growth strategies that drove our significant success in the prior two quarters."

Molly Langenstein, Chief Executive Office and President Elect, Chico's FAS said: "As we look to the second quarter and the balance of 2020, we believe we will be competitively stronger because of the measures we've taken to liquidate our prior season inventory and remove it from our stores and distribution centers. We are encouraged by our strong store re-openings and the accelerated demand in our digital channels, which demonstrate our customers' loyalty to our brands. As a result of the product changes we made in the second half of 2019, we are well-positioned to capitalize on the growth opportunities ahead."

COVID-19 Business Actions Summary

Temporarily closed all retail stores in North America on March 17, 2020 to safeguard our customers, employees and the communities we serve;

Temporarily furloughed the majority of employees, while providing continued health benefits for eligible employees during the furlough;

Temporarily reduced a majority of non-furloughed associates' salary or hours, including executive officers and the Board of Directors' (the "Board") annual cash retainers;

Adopted social distancing policies and enhanced safety procedures for distribution center associates;

Suspended rent payments commencing April 2020 and are in active discussions with landlords to find a mutually beneficial and agreeable path forward;

Engaged a third-party to assist in restructuring the lease portfolio and to seek rent relief in the form of rent reductions, rent abatements and other concessions;

Quickly aligned merchandise receipts with conservative forecast of market demand;

Partnered with suppliers and vendors to reduce operating costs and extend payment terms;

Significantly reduced selling, general and administrative ("SG&A") expenses to better align operating costs with expected sales;

Suspended quarterly dividend beginning in the second quarter; and

Reduced capital expenditures primarily related to non-essential maintenance and business essential expenditures.

In addition to $117.6 million in cash and marketable securities at the end of the first quarter, the Company has...