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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (24714)	8/25/2006 11:23:42 AM
From: Mark Marcellus	Read Replies (1) \| Respond to of 78768

How much of the business is WH/BM? Don't have the revenue breakdown handy, but the store count as of EOY was 544 Chico's vs. 204 WH/BM. Retailing can turn on a dime, on the next "great" concept or fad That's not Chico's. They have an extremely loyal customer base (women over 40). That's not to say this can't change, but if their core base does erode it will be a much more gradual process than at your typical apparel retailer. Chico's has had an amazing string of SSS increases that has just been broken - certainly there is a worry that this is the beginning of a long decline, and that's a big reason why the stock got spanked so badly. In the last five years or so, trough PE has been 15 The current problems for Chico's are unprecedented in Wall Street memory, and are quite significant in terms of investor psychology. We could go well below a 15 PE.