One of the largest employers in SWFL sees sharp declines on Wall Street

Published: Updated:
A Chico's store. Photo via WINK News.
Credit: WINK News

One of the largest employers in SWFL sees sharp declines on Wall Street.

Chico’s FAS stock has had strong fluctuations recently. It is a troubling sight for Jim Wall who works at Career Source Southwest Florida.

“If Chico’s were in some sort of doomsday scenario I think it would hurt Southwest Florida a lot,” Wall said.

According to state records, Chico’s employs more than 1,000 people in our area. Wall said not only does the retail company provide a lot of jobs, but it has a strong connection to the community.

“They’ve always been involved with dress for success, Junior League, all sorts of community activities,” Wall said. “You can see the Chico’s brand all over southwest Florida.”

Chico’s FAS plummeted to $4.79 a share last week as it dropped nearly three points (the company also owns White House Black Market and Soma). Its stock has bounced back a bit since then, hovering around the $5 to $6 range.

It may partly be an excessive reaction attributed to the lower net income than the previous year. Chico’s FAS had net income of $6.5 million, or $0.05 per diluted share, in the third quarter in 2018. It is significantly less than the net income of $16.7 million, or $0.13 per diluted share, in the third quarter of 2017.

Wall hopes the drop is a fluke, but FGCU Economics Professor Christopher Westley said he expects it to stay there for a while.

FGCU Economics Professor Christopher Westley. Photo via WINK News.
FGCU Economics Professor Christopher Westley. Photo via WINK News.

“My understanding of the market is that the company in changing some of it brands,” Westley said. “It’s sort of a ignored it’s core base to match and lost some of its sales because of that.”

On top of that, Westley said Chico’s is trying to coexist with an Internet world that is taking over retail shopping.

“The company is going to have to make some changes to the issues they’re facing,” Westley said.

This is not the first time Chico’s faced turmoil — back in 2016, it laid off nearly 200 employees. Just like then, both Wall and Westley expect a bounce back.

“If any company can do, it it would be Chico’s,” Westley said.

“This isn’t the first time we’ve seen a little re-organization of Chicos,” Wall said. “Not only brand wise, but from an administrative standpoint.”

Copyright ©2024 Fort Myers Broadcasting. All rights reserved.

This material may not be published, broadcast, rewritten, or redistributed without prior written consent.