Chico's FAS, Inc. Announces Record Fourth Quarter and Year End Earnings

Business Wire, March 7, 2001

Business Editors

FORT MYERS, Fla.--(BUSINESS WIRE)--March 7, 2001

Chico's FAS, Inc. (Nasdaq: CHCS):

- Revenues rose 67.4% to a record $259.4 million for the fiscal year

- Net income climbed 83.2% to a record $28.4 million for the fiscal year

- Company opened 50 new stores, net and increased total selling square footage
by 32%

Chico's FAS, Inc. (Nasdaq: CHCS) today announced record financial results for the fourth quarter and fiscal year ended February 3, 2001.

For the fiscal year ended February 3, 2001, which included fifty-three weeks, net income rose 83.2 percent to a record $28.4 million, or $1.56 per diluted share compared to net income of $15.5 million or $.88 per diluted share in the fifty-two weeks ended January 29, 2000. Net sales for the twelve months increased 67.4 percent to $259.4 million from $155.0 million in the prior period. Comparable store sales for the Company-owned stores increased 34.3 percent for the fifty-three week period as compared to the same fifty-three week period last year.

For the fourth quarter ended February 3, 2001, which included fourteen weeks, net income rose 75.6 percent to a record $5.7 million, or $.31 per diluted share compared to net income of $3.2 million, or $.18 per diluted share in the thirteen week quarter ended January 29, 2000. Net sales for the fourth quarter climbed 75.0 percent to $73.1 million from $41.8 million in the prior period. Comparable store sales for the Company-owned stores increased 32.2 percent for the fourteen week period as compared to the same fourteen week period last year.

Marvin Gralnick, Chico's CEO commented, "Chico's record earnings of $1.56 a share underlined the strength and growing awareness of the Chico's brand. A combination of outstanding clothing and accessories, new stores, national magazine ads, catalogs, and a store experience our customers rave about continue to propel our strong growth".

Chico's will be conducting a conference call on March 7, 2001 at 11:00 a.m. eastern time to discuss the fourth quarter and fiscal year results as well as its current operational strategies. To participate in the call you can dial (312) 470-0008 at least five minutes prior to the call using passcode HQ. You can also listen to the call at no cost via the Internet at http://www.tirc.com/chicos/index.htm.

Chico's sells exclusively designed, private-label women's casual clothing and related accessories. The Company operates a chain of 250 stores in 39 states and the District of Columbia. The Company owns 239 stores, franchisees own 11.

Certain statements contained herein, including without limitation, statements addressing the beliefs, plans, objectives, estimates or expectations of the Company or future results or events constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known or unknown risks, including, but not limited to, general economic and business conditions, and conditions in the specialty retail industry. There can be no assurance that the actual future results, performance, or achievements expressed or implied by such forward-looking statements will occur. Users of forward-looking statements are encouraged to review the Company's latest annual report on Form 10-K, its filings on Form 10-Q, management's discussion and analysis in the Company's latest annual report to stockholders, the Company's filings on Form 8-K, and other federal securities law filings for a description of other important factors that may affect the Company's business, results of operations and financial condition. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that projected results expressed or implied in such statements will not be realized.

For more detailed information, please call 877/424-4267 to listen

to Chico's monthly sales information and investor relations line

A copy of a slide show addressing Chico's recent financial results and current plans for expansion is available on the Chico's website at

http://www.chicos.com in the investor relations section

For additional information on Chico's FAS, Inc. free of charge via

the Internet, please go to http://tirc.com/invest/chicos/index.htm

(FINANCIAL TABLES FOLLOW)

                           CHICO'S FAS, INC.
                        Condensed Balance Sheet
                              (Unaudited)
                                          As of              As of
                                         02/03/01          01/29/00
                                      -------------      ------------
      ASSETS
Current Assets:
  Cash and cash equivalents           $   3,914,118      $  3,980,930
  Marketable securities, at market       14,221,520        13,995,527
  Receivables, net                        2,998,910         1,706,661
  Inventories                            24,394,162        14,834,800
  Prepaid expenses                        2,254,349           668,695
  Deferred taxes                          3,003,000         2,038,000
                                      -------------      ------------
    Total Current Assets                 50,786,059        37,224,613
                                      -------------      ------------

Land, Building and Equipment:
  Cost                                   80,198,365        41,217,160
  Less accumulated depreciation and
   amortization                         (14,613,356)       (9,872,163)
                                      -------------      ------------
    Land, Building and Equipment, Net    65,585,009        31,344,997
                                      -------------      ------------

Other Assets:
  Deferred taxes                            747,000         1,106,000
  Other assets, net                         688,549           640,211
                                      -------------      ------------
    Total Other Assets                    1,435,549         1,746,211
                                      -------------      ------------
                                       $117,806,617       $70,315,821
                                      =============      ============


      LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts payable                    $  13,751,762     $   5,982,684
  Accrued liabilities                    11,299,352         4,593,104
  Current portion of debt and lease
   obligations                              276,410           260,111
                                      -------------      ------------
    Total Current Liabilities            25,327,524        10,835,899
                                      -------------      ------------

Noncurrent Liabilities:
  Mortgage note payable                   5,149,500         5,221,500
  Deferred rent                           2,008,352         1,617,680
                                      -------------      ------------
    Total Noncurrent Liabilities          7,157,852         6,839,180
                                      -------------      ------------

Stockholders' Equity:
  Common stock                              174,994           171,285
  Additional paid-in capital             18,935,829        14,709,238
  Unrealized loss on investments             47,246           (24,334)
  Retained earnings                      66,163,172        37,784,553
                                      -------------      ------------
    Total Stockholders' Equity           85,321,241        52,640,742
                                      -------------      ------------
                                       $117,806,617      $ 70,315,821
                                      =============      ============



                           CHICO'S FAS, INC.
                    Condensed Statements of Income
                              (Unaudited)


                     Fiscal Year Ended         Fourth Quarter Ended
                   02/03/01      01/29/00     02/03/01      01/29/00
                 ------------  ------------  -----------   -----------
Net sales by
 company stores  $254,824,364  $152,473,637  $71,762,930   $41,276,970
Net sales to
 franchisees        4,621,532     2,528,644    1,361,363       520,042
                 ------------  ------------  -----------   -----------
    Net sales     259,445,896   155,002,281   73,124,293    41,797,012
Cost of goods
 sold             108,670,577    64,949,930   31,941,300    17,954,280
                 ------------  ------------  -----------   -----------
    Gross profit  150,775,319    90,052,351   41,182,993    23,842,732

General,
 administrative
 and store
 operating
 expenses         105,411,846    65,246,577   32,032,614    18,685,768
                 ------------  ------------  -----------   -----------

    Income from
     operations    45,363,473    24,805,774    9,150,379     5,156,964
Interest income
 (expense), net       408,146       177,606       51,798        81,988
                 ------------  ------------  -----------   -----------
    Income
     before taxes  45,771,619    24,983,380    9,202,177     5,238,952
Income tax
 provision         17,393,000     9,494,000    3,497,000     1,991,000
                 ------------  ------------  -----------   -----------
    Net income   $ 28,378,619   $15,489,380  $ 5,705,177    $3,247,952
                 ============  ============  ===========   ===========
Per share data:
Net income per
 common
 share-basic            $1.64         $0.91        $0.33         $0.19
                 ============  ============  ===========   ===========
Net income per
 common and
 common
 equivalent
 share-diluted          $1.56         $0.88        $0.31         $0.18
                 ============  ============  ===========   ===========
Weighted average
 common shares
 outstanding
 -basic            17,351,953    16,942,233   17,478,029    17,102,300
                 ============  ============  ===========   ===========
Weighted average
 common and
 common equivalent
 shares
 outstanding
 -diluted          18,147,865    17,681,038   18,257,287    17,875,183
                 ============  ============  ===========   ===========