You'd Be Roughly 750% Richer If You Had Invested In This Stock In April 2020
Chico's is the fashion clothing company famous for being founded and led by women. The brand identity aims to offer solutions for women, community building, and to design unforgettable experiences that provide ladies with joy and confidence. This positive image helps to explain why the company's brands have been such a success over the years.
Chico's FAS was founded in 1983. With a headquarters in Fort Myers, Florida, it competes in the apparel retail industry. As of the end of October in 2023, the company owned 1,256 outlets and boutiques all across the United States, U.S. Virgin Islands, and Puerto Rico. It also maintains a strong presence online.
The company owns three successful branded outlets that have propelled the stock fantastically over the past five years. If you had purchased Chico's stock (NYSE:CHS) at its October 2020 low and held it until the company was acquired in January of 2025 per Stock Analysis, you would have realized a gain of nearly 750%. Those are the kinds of impressive gains that Facebook stock has delivered in the past decade.
Chico's successful business model is built on catering to women
Chico's FAS, Inc. competes in the women's private branded clothing specialty retail market. The company offers its own clothing ranging from dressy to casual, accessories, and intimate apparel. While it is primarily an American mainland company, Chico's does have locations around Mexico, the American Caribbean territories, and in domestic airports.
The firm has three concepts including Chico's, Soma, and WHBM White House Black Market. Chico's stores mainly distribute proprietary branded clothes targeted towards women in the moderate to upper income bracket, according to Stock Analysis. Soma offers its own branded loungewear, sleepwear, and lingerie items. WHBM markets everyday women's apparel in denim, basic outfits, all purpose dresses, comfortable work wear, scarves, purses, jewelry, belts, and shoes.
Chico's, Soma, and WHBM compete through their catalogs, retail stores, and also online. Their websites include Chicos.com, chicosofftherack.com, soma.com, and whbm.com. The company also sells its branded products via third party channels.
Five year investors in Chico's stock were up nearly 750%
Chicos has experienced some challenges over the last several years like other retailers, yet it turned things around dramatically by 2024. The company saw 2024 full year revenue of $2.17 billion, up from $2.14 billion in 2023, per Stock Analysis. They grew total sales by 1.21% for the period.
On January 5th of 2024, Sycamore Partners completed its acquisition of Chico's FAS. The private equity firm paid stockholders $7.60 for each share. This all cash transaction totaled around $1 billion, according to the Sycamore Partners press release.
If you had purchased Chico's company stock CHS at its low in 2020 and held on for almost five years, you would have made a fortune. October of 2020 saw CHS bottom out at .91 per share as revealed by Stock Analysis historical charts. On January 5, 2024, CHS stockholders received $7.60 per share in the Sycamore Partners cash buyout. This amounted to a stunning gain of 735%, approximately 147% a year in returns. Investor profits like these are greater than those enjoyed by Apple stock over the last 10 years.