Chico's FAS Expands Cost Reduction And Operating Efficiency Initiatives

(RTTNews) - Chico's FAS Inc. (CHS) announced new initiatives to improve its supply chain, enhance its marketing efforts and leverage non-merchandise procurement. The new initiatives are expected to reduce complexity and standardize processes across the organization, thereby improving the Company's ability to respond in real-time to changes in customer demand for merchandise.The new initiatives are expected to generate approximately $50 million to $70 million in annualized savings.

In the pre-market trade, CHS is currently trading at $10.32, down $0.53 or 4.88%.

The new cost cutting actions are in addition to the previously announced realignment of the Company's marketing and digital commerce functions. That realignment, announced April 25, places the decision makers directly into the Company's three brands and is expected to generate $14 million in annualized savings.

Combined, the marketing realignment and new initiatives are estimated to generate $65 million to $85 million in annual savings. The company anticipates generating $15 million of these costs savings in fiscal 2016, and expects these initiatives to be fully implemented during 2017.