Shares of Chico's FAS Inc. soared 15.1% in Tuesday premarket trading after women's apparel and accessories retailer announced plans to begin reopening stores on May 4. Chico's portfolio includes the namesake chain, White House Black Market and Soma. The reopening will happen in three phases: first the company will use its stores to fulfill online orders, then buy-online-pickup-in-stores using contactless curbside pickup and, finally, shop by appointment for all of its brands. "We believe we will have some significant advantages in the next several months as the majority of our stores are under 3,500 square feet and are located in easily accessible shopping plazas," said Chief Executive Bonnie Brooks in a statement. "Due to the smaller size of our boutiques, Chico's FAS has the ability to reopen quickly and safely and to follow enhanced safety precautions." Brooks says Chico's has experienced double-digit digital growth over the past six weeks. The growth was driven by certain categories, including active and sleep, and, according to Brooks, a tech enhancement. Store management was given a handheld device containing proprietary styling software, Style Connect, that "allows for intimate but distanced connection" with customers. The majority of Chico's associates were furloughed on April 1, hours and pay were reduced for most remaining associates, and pay was halved for executives and the board. Distribution center workers have received their full pay. For the 13 weeks ending February 1, same-store sales were up 2.2%, after three consecutive quarters of negative same-store sales. For the four weeks ending February 29, same-store sales were up 2.7%. As of April 27, Chico's had about $103 million in cash and equivalents on hand. Borrowings on an asset-based credit facility and by leveraging its own real estate could yield an additional $100 million in liquidity. The company also has a one-time liquidity benefit of $95 million under the CARE
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