Building proper stores

Could Boston Proper be the next Chico's?

Executives with the Fort Myers-based women's retailer, Chico's FAS, hinted at the potential during an earnings conference call with investors, according to the transcript posted on SeekingAlpha.com.

Chico's, which reported a 25% jump in earnings per share in the fourth quarter, says it plans to start building test stores for Boston Proper in early 2013.

Chico's acquired Boston Proper for $213 million in the fall. Boston Proper sells women's apparel directly to customers via the Internet and catalogs, but it has no stores.

Chico's CEO David Dyer says the number of Boston Proper stores is yet to be determined. But the Chico's brand has 685 stores and has the potential for as many as 850 around the country, and there's no reason to think that Boston Proper could grow to similar size.

Chico's has a track record of building brands. The company has grown the White House | Black Market to 390 stores and Soma Intimates to 186 stores.

“The scale of store growth truly differentiates Chico's FAS from most others in specialty apparel, and along with other significant initiatives we will share with you in March, all point to Chico's FAS as a growth company poised to perform at a superior level compared to most others in the sector,” Dyer told investors.