Chico's misses Street 2Q forecasts
Aug. 30, 2017
FORT MYERS, Fla. (AP) — Chico's FAS Inc. on Wednesday reported fiscal second-quarter net income of $22.7 million.
On a per-share basis, the Fort Myers, Florida-based company said it had profit of 18 cents.
The results fell short of Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 21 cents per share.
The clothing chain posted revenue of $578.6 million in the period, also missing Street forecasts. Six analysts surveyed by Zacks expected $579.6 million.
Sales in stores open at least a year — a key metric of a retailer's health — declined 8.4 percent during the quarter.
"Second-quarter sales were disappointing, and we are taking decisive actions to adjust our assortments and enhance omni-channel capabilities in bellwether categories such as Jackets at Chico's and Dresses at White House Black Market," Shelley Broader, CEO and president, said in a statement. "While it is early in the third quarter, these key categories are showing encouraging progress."
Chico's shares have dropped 46 percent since the beginning of the year. The stock has dropped 34 percent in the last 12 months. In premarket trading, the stock slid 12 percent to $6.90.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CHS at https://www.zacks.com/ap/CHS
Keywords: Chico's FAS, Earnings Report