=Chico's FAS (CHS) reported earnings Thur 26 May 2016 (b/o)

Chico's FAS misses by $0.06, misses on revs; Q1 total comps -4.2% :

• Reports Q1 (Apr) earnings of $0.25 per share, excluding non-recurring items,$0.06 worse than the Capital IQ Consensus of $0.31; revenues fell 7.9% year/year to $643 mln vs the $667.14 mln Capital IQ Consensus. 
• When excluding Boston Proper from fiscal 2015, net sales decreased 4.4%,primarily reflecting a decline in comparable sales of 4.2% and 15 net store closures. The 4.2% decrease in comparable sales for the first quarter followed a 0.1% decrease in last year's first quarter, and reflected reduced average dollar sale and slightly lower transaction count.
• For the first quarter, gross margin was $262.3 mln, or 40.8%, compared to $295.6 mln, or 42.4%, in last year's first quarter. At the end of the first quarter of 2016, inventories totaled $268.0 mln compared to $270.3 mln last year.
• New initiatives in supply chain, non-merchandise procurement and marketing expected to result in $50 mln to $70 mln in annual savings, in addition to $14 mln from recently announced marketing and digital commerce realignment.