Chico’s FAS Earnings: Double-Digit Revenue Growth Continues

Chico’s FAS Inc. (NYSE:CHS) reported net income above Wall Street’s expectations for the first quarter. Chico’s FAS is a national specialty retailer of private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items.

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Chico’s FAS Earnings Cheat Sheet for the First Quarter

Results: Net income for Chico’s FAS Inc. rose to $53.6 million (32 cents per share) vs. $45.9 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 16.7% from the year-earlier quarter.

Revenue: Rose 21.2% to $650.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chico’s FAS Inc. beat the mean analyst estimate of 29 cents per share. It beat the average revenue estimate of $630.6 million.

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 16.5%, with the biggest boost coming in the most recent quarter when revenue rose 21.2% from the year earlier quarter.

Gross margin shrank one percentage point to 58.2%. The contraction appeared to be driven by increased costs, which rose 24% from the year earlier quarter while revenue rose 21.2%.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 15 cents versus a mean estimate of net income of 11 cents per share.

Net income has increased 20.4% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 42.5% from the year-earlier quarter.

Looking Forward: The average estimate for the second quarter remains unchanged at 29 cents a share. The average estimate for the fiscal year is $1.02 per share, a rise from 99 cents ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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