Chico's FAS, Inc. (NYSE:CHS) Q1 2023 Earnings Conference Call June 6, 2023 8:00 AM ET

Company Participants

Julie MacMedan - Head of IR

Molly Langenstein - President and CEO

PJ Guido - CFO

Conference Call Participants

Dana Telsey - Telsey Group

Jeff Lick - B. Riley Financial

Operator

Welcome to the Chico's FAS First Quarter 2023 Conference Call and Webcast. All participants will be in listen-only mode. Please note this call is being recorded.

I would now like to turn the call over to the Company's Head of Investor Relations, Julie MacMedan. Ms. MacMedan, please go ahead.

Julie MacMedan

Good morning, and welcome to the Chico's FAS first quarter 2023 conference call and webcast. For reference, our earnings release can be found on our website at www.chicosfas.com under Press Releases on the Investor Relations page.

Today's comments will include forward-looking statements regarding our current expectations, assumptions, plans, estimates, judgments and projections about our business and our industry, which speak only as of today's date. You should not unduly rely on these statements.

Important factors that could cause actual results or events to differ materially from those projected or implied by our forward-looking statements are included in today's earnings release, our SEC filings and the comments made on this call. We disclaim any obligation to update or revise any information discussed on this call, except as may be otherwise required by law.

Certain non-GAAP measures may be referenced in today's call. A GAAP to non-GAAP reconciliation schedule is included in our earnings presentation posted this morning on the Chico's FAS Investor Relations page.

Now, I'll turn the call over to our CEO and President, Molly Langenstein.

Molly Langenstein

Thank you, Julie, and good morning, everyone.

We delivered another outstanding quarter of operating income and earnings performance, demonstrating solid execution and underscoring our commitment to our four strategic pillars, of being customer-led, product obsessed, digital first and operationally excellent.

First quarter earnings per share exceeded last year and our outlook, driven by gross margin performance and disciplined expense management. For all three brands, full price sales remained healthy. Spend per customer and average unit retail was up year-over-year, and we gained market share.

Chico's, our largest brand, celebrating its 40th anniversary, demonstrated outstanding performance, posting comparable sales growth of 4.9% on top of 52% last year. We believe Chico's is positioned for continued outsized growth.

Soma sales trends continued to improve from prior quarters while White House Black Market sales declined as we quickly sold through fashion inventories due to strong customer demand. Let me cover some highlights for the quarter.