Chico's profit falls

FORT MYERS — Sluggish sales pushed profits down 31% at Chico's FAS.

Chico's reported net income of $30.1 million on sales of $671.1 million in the second quarter ending Aug. 2. That compares with net income of $43.6 million on sales of $649.5 million in the same quarter one year ago.

Sales at stores open more than one year, an important gauge in the retail sector, rose just 0.3%. Notably, sales at Chico's White House | Black Market stores open for longer than one year fell 1.9%. Sales at Boston Proper fell $4.4 million, the company says.

“Gross margin was 52.4% of net sales, a 240 basis point decrease from last year's second quarter, primarily reflecting increased promotional activity in fiscal 2014 to sell through seasonal merchandise,” the company says in a statement announcing the financial results.

Selling, general and administrative expenses increased as Chico's spent more this quarter opening new stores.