Chicos FAS (CHS) Tops Q3 EPS by 7c; Comps Fell 4.9%

November 22, 2016 7:32 AM EST

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Chicos FAS (NYSE: CHS) reported Q3 EPS of $0.20, $0.07 better than the analyst estimate of $0.13. Revenue for the quarter came in at $596.9 million versus the consensus estimate of $610.83 million.

Fiscal 2016 Fourth Quarter Outlook

The fiscal 2016 fourth quarter outlook excludes Boston Proper for comparability purposes. The Company is anticipating a low single digit comparable sales decline in the fourth quarter compared to last year. We expect improvement in merchandise margin to be more than offset by occupancy deleverage, resulting in a reduction in gross margin rate. We continue to make progress on our Initiatives and expect a decrease in SG&A as a percent of sales; however, the reduction in marketing spend will be at a lower level than recognized in the third quarter. Fourth quarter total inventory is planned to be lower than last year.

Shelley Broader, CEO and President, said, "Our third quarter earnings exceeded expectations. As a result of our efforts to transform Chico's FAS for the future, we were able to achieve significant earnings growth and are demonstrating considerable progress toward our goal of double digit operating margin. We are fully engaged in the implementation of our cost reduction and operating efficiency initiatives, and our continued progress reinforces our confidence in the company's strategic plan. The improvements across the organization, additional recent hires, customers' positive response to new merchandising initiatives, and other brand specific actions underway are re-energizing the company and fortifying our foundation for revenue and earnings growth and sustainable value creation."

Comparable Sales

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

October 29, 2016

October 31, 2015

October 29, 2016

October 31, 2015

Chico's

(5.6)%

(4.7)%

(5.4)%

(2.1)%

White House Black Market

(5.5)%

(2.0)%

(3.5)%

(0.8)%

Soma

0.4%

(0.9)%

0.6%

3.6%

Total Company

(4.9)%

(3.3)%

(4.0)%

(1.0)%

For earnings history and earnings-related data on Chicos FAS (CHS) click here.



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