EX-99.2 3 ex9922016accountingpolicyc.htm EXHIBIT 99.2 Exhibit
Exhibit 99.2

The Company has historically presented store occupancy expenses, shipping expenses and shipping revenue within selling, general and administrative expenses ("SG&A"). Beginning in the first quarter 2016, the Company will present store occupancy expenses and shipping expenses within cost of goods sold and will present shipping revenue within net sales. A detailed disclosure of the changes will be included in our first quarter 2016 Form 10-Q. The tables below present the presentation changes to selected consolidated financial data.
Chico's FAS, Inc. and Subsidiaries
Fiscal 2015 Reconciliation of Reported to Adjusted Selected Consolidated Financial Data
(Unaudited)
(in thousands)
 
As Reported
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 2, 2015
 
August 1, 2015
 
October 31, 2015
 
January 30, 2016
 
 
January 30, 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
693,339

 
100.0
%
 
$
680,351

 
100.0
%
 
$
641,219

 
100.0
%
 
$
627,400

 
100.0
%
 
 
$
2,642,309

 
100.0
%
Cost of goods sold
297,569

 
42.9

 
314,383

 
46.2

 
290,737

 
45.3

 
308,863

 
49.2

 
 
1,211,552

 
45.9

Gross margin
395,770

 
57.1

 
365,968

 
53.8

 
350,482

 
54.7

 
318,537

 
50.8

 
 
1,430,757

 
54.1

Selling, general and administrative expenses
328,217

 
47.4

 
308,437

 
45.3

 
327,575

 
51.1

 
318,356

 
50.7

 
 
1,282,585

 
48.5

Subtotal
67,553

 
9.7

 
57,531

 
8.5

 
22,907

 
3.6

 
181

 
0.1

 
 
148,172

 
5.6

Adjustments
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 2, 2015
 
August 1, 2015
 
October 31, 2015
 
January 30, 2016
 
 
January 30, 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales(1)
$
4,427

 
 %
 
$
5,475

 
 %
 
$
4,214

 
 %
 
$
4,210

 
 %
 
 
$
18,326

 
 %
Store occupancy expense(2)
95,238

 
13.4

 
97,258

 
13.8

 
96,773

 
14.8

 
95,626

 
14.9

 
 
384,895

 
14.1

Shipping expense(3)
9,341

 
1.3

 
9,484

 
1.4

 
8,760

 
1.3

 
9,732

 
1.5

 
 
37,317

 
1.4

Cost of goods sold
104,579

 
14.7

 
106,742

 
15.2

 
105,533

 
16.1

 
105,358

 
16.4

 
 
422,212

 
15.5

Gross margin
(100,152
)
 
(14.7
)
 
(101,267
)
 
(15.2
)
 
(101,319
)
 
(16.1
)
 
(101,148
)
 
(16.4
)
 
 
(403,886
)
 
(15.5
)
Selling, general and administrative expenses
(100,152
)
 
(14.6
)
 
(101,267
)
 
(15.1
)
 
(101,319
)
 
(16.0
)
 
(101,148
)
 
(16.3
)
 
 
(403,886
)
 
(15.5
)
Subtotal

 
(0.1
)
 

 
(0.1
)
 

 
(0.1
)
 

 
(0.1
)
 
 

 

 
As Adjusted
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 2, 2015
 
August 1, 2015
 
October 31, 2015
 
January 30, 2016
 
 
January 30, 2016
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
697,766

 
100.0
%
 
$
685,826

 
100.0
%
 
$
645,433

 
100.0
%
 
$
631,610

 
100.0
%
 
 
$
2,660,635

 
100.0
%
Cost of goods sold
402,148

 
57.6

 
421,125

 
61.4

 
396,270

 
61.4

 
414,221

 
65.6

 
 
1,633,764

 
61.4

Gross margin
295,618

 
42.4

 
264,701

 
38.6

 
249,163

 
38.6

 
217,389

 
34.4

 
 
1,026,871

 
38.6

Selling, general and administrative expenses
228,065

 
32.7

 
207,170

 
30.2

 
226,256

 
35.1

 
217,208

 
34.4

 
 
878,699

 
33.0

Subtotal
67,553

 
9.7

 
57,531

 
8.4

 
22,907

 
3.5

 
181

 

 
 
148,172

 
5.6


(1) Adjustments to net sales represent the correction of an immaterial error in the classification of shipping revenue, which was previously classified within SG&A.
(2) Adjustments to store occupancy expense represent the reclassification of store occupancy expenses, which were previously classified within SG&A.
(3) Adjustments to shipping expense represent a change in accounting policy to present shipping expenses within cost of goods sold, which were previously presented within SG&A.

1


Chico's FAS, Inc. and Subsidiaries
Fiscal 2014 Reconciliation of Reported to Adjusted Selected Consolidated Financial Data
(Unaudited)
(in thousands)
 
As Reported
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 3, 2014
 
August 2, 2014
 
November 1, 2014
 
January 31, 2015
 
 
January 31, 2015
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
681,605

 
100.0
%
 
$
671,130

 
100.0
%
 
$
665,569

 
100.0
%
 
$
656,907

 
100.0
%
 
 
$
2,675,211

 
100.0
%
Cost of goods sold
298,714

 
43.8

 
319,658

 
47.6

 
301,776

 
45.3

 
328,741

 
50.0

 
 
1,248,889

 
46.7

Gross margin
382,891

 
56.2

 
351,472

 
52.4

 
363,793

 
54.7

 
328,166

 
50.0

 
 
1,426,322

 
53.3

Selling, general and administrative expenses
319,049

 
46.8

 
304,737

 
45.4

 
321,574

 
48.3

 
317,774

 
48.4

 
 
1,263,134

 
47.2

Subtotal
63,842

 
9.4

 
46,735

 
7.0

 
42,219

 
6.4

 
10,392

 
1.6

 
 
163,188

 
6.1

Presentation Adjustments
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 3, 2014
 
August 2, 2014
 
November 1, 2014
 
January 31, 2015
 
 
January 31, 2015
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales(1)
$
4,026

 
 %
 
$
5,465

 
 %
 
$
4,515

 
 %
 
$
4,712

 
 %
 
 
$
18,718

 
 %
Store occupancy expense(2)
90,860

 
13.0

 
93,682

 
13.5

 
94,734

 
13.9

 
93,711

 
13.9

 
 
372,987

 
13.5

Shipping expense(3)
8,844

 
1.3

 
9,441

 
1.4

 
9,280

 
1.4

 
10,250

 
1.5

 
 
37,815

 
1.4

Cost of goods sold
99,704

 
14.3

 
103,123

 
14.9

 
104,014

 
15.3

 
103,961

 
15.4

 
 
410,802

 
14.9

Gross margin
(95,678
)
 
(14.3
)
 
(97,658
)
 
(14.9
)
 
(99,499
)
 
(15.3
)
 
(99,249
)
 
(15.4
)
 
 
(392,084
)
 
(14.9
)
Selling, general and administrative expenses
(95,678
)
 
(14.2
)
 
(97,658
)
 
(14.8
)
 
(99,499
)
 
(15.2
)
 
(99,249
)
 
(15.4
)
 
 
(392,084
)
 
(14.9
)
Subtotal

 
(0.1
)
 

 
(0.1
)
 

 
(0.1
)
 

 

 
 

 

 
As Adjusted
 
 
Thirteen Weeks Ended
 
 
Fifty-Two Weeks Ended
 
May 3, 2014
 
August 2, 2014
 
November 1, 2014
 
January 31, 2015
 
 
January 31, 2015
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
Amount
 
% of Sales
 
 
Amount
 
% of Sales
Net Sales
$
685,631

 
100.0
%
 
$
676,595

 
100.0
%
 
$
670,084

 
100.0
%
 
$
661,619

 
100.0
%
 
 
$
2,693,929

 
100.0
%
Cost of goods sold
398,418

 
58.1

 
422,781

 
62.5

 
405,790

 
60.6

 
432,702

 
65.4

 
 
1,659,691

 
61.6

Gross margin
287,213

 
41.9

 
253,814

 
37.5

 
264,294

 
39.4

 
228,917

 
34.6

 
 
1,034,238

 
38.4

Selling, general and administrative expenses
223,371

 
32.6

 
207,079

 
30.6

 
222,075

 
33.1

 
218,525

 
33.0

 
 
871,050

 
32.3

Subtotal
63,842

 
9.3

 
46,735

 
6.9

 
42,219

 
6.3

 
10,392

 
1.6

 
 
163,188

 
6.1


(1) Adjustments to net sales represent the correction of an immaterial error in the classification of shipping revenue which was previously classified within SG&A.
(2) Adjustments to store occupancy expense represent the reclassification of store occupancy expenses which were previously classified within SG&A.
(3) Adjustments to shipping expense represent a change in accounting policy to present shipping expenses within cost of goods sold, which were previously presented within SG&A.



2