Chico's disappoints investors

FORT MYERS — Chico's FAS posted lower sales and a quarterly loss as the company boosted discounts to lure shoppers into its stores.

The women's retailer reported a small net loss of $348,000 on revenues of $610.2 million in the quarter ending Feb. 1. That compared with net income of $31.5 million on revenues of $651.9 million in the same quarter one year ago.

Chico's attributed a portion of the loss on charges it had to take related to the Boston Proper acquisition. The company acquired Internet retailer Boston Proper in 2011, but it had to take goodwill impairment charges due to declines in that business.

Part of the drop in sales was attributed to a quirk in the calendar. The fourth quarter ending February 2013 had 14 weeks, one extra week compared with the most recent fourth quarter.

But Chico's also says customer visits to stores fell. “Comparable sales for the fourth quarter decreased 3.4% following a 3.7% increase in last year's fourth quarter, reflecting lower average dollar sale and transaction count, primarily as a result of the impact of a highly promotional environment in response to lower traffic,” Chico's says in a statement.

Chico's shares traded nearly 10% lower Thursday morning after it announced its quarterly results. The company's shares are traded on the New York Stock Exchange (symbol: CHS; recent price: $17).