Chico's FAS (CHS) reported earnings on Thur 25 Feb 2016 (b/o)

** charts after earnings **

  

• 6 weeks later:

Chico's FAS beats by $0.05, reports revs in-line; sees FY16 comparable sales flat to slightly negative:

• Reports Q4 (Jan) earnings of $0.05 per share, $0.05 better than the Capital IQ Consensus of ($0.00); revenues fell 4.5% year/year to $627.4 mln vs the $625.86 mln Capital IQ Consensus.
  • The 3.2% decrease in comparable sales for the fourth quarter was following a 4.3% increase in last year's fourth quarter, and reflected a decrease in average dollar sale partially offset by an increase in transaction count.
• Sees FY16 comparable sales flat to slightly negative, with more opportunity for positive growth in the back half of the year.
  • The Company expects to achieve merchandise margin expansion and slight SG&A leverage, both of which we expect to be offset by a return to targeted levels of incentive compensation, resulting in flat gross margin and SG&A leverage.
  • Co anticipate opening approximately 25 stores while closing an additional 50 stores in our efforts to continue our capital allocation and cost reduction initiatives.
  • Total inventory, excluding the impact of in-transit inventory, is expected to remain consistent with 2015 levels.