Chicos FAS (CHS) Misses Q1 EPS by 3c, Revenues Beat, Comps Down 5.9%

Chicos FAS (NYSE: CHS) reported Q1 EPS of $0.23, $0.03 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $561.82 million versus the consensus estimate of $552.6 million.

Fiscal 2018 Second Quarter and Full-Year Outlook

For second quarter fiscal 2018, the Company is anticipating a mid-to-high single digit decline in net sales and a low-to-mid single digit decline in consolidated comparable sales. The Company expects gross margin rate as a percentage of net sales to be approximately flat compared to second quarter fiscal 2017. The Company also anticipates SG&A expenses to be up slightly compared to second quarter fiscal 2017.

For full-year fiscal 2018, the Company is anticipating a mid-single digit decline in net sales and a low-to-mid single digit decline in consolidated comparable sales. The Company expects gross margin rate expansion in the range of 50 to 75 basis points over fiscal 2017. The Company also anticipates SG&A expenses to be approximately flat compared to fiscal 2017. Given the early nature of the new sales-driving initiatives, we do not expect a material impact to the Company\'s fiscal 2018 financial results.

The Company estimates a fiscal 2018 tax rate in the range of 26% to 28%. In addition, the Company anticipates 2018 capital expenditures to be $60 million to $70 million, primarily driven by store reinvestments and technology enhancements.

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

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