=Chico's FAS (CHS) reported earnings on Wed 24 May 2017 (b/o)

Chico's FAS misses by $0.04, misses on revs; Q1 comps -8.7%; sees mid single digit comp decline for FY17:

• Reports Q1 (Apr) earnings of $0.25 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.29; revenues fell 9.2% year/year to $583.7 mln vs the $624.75 mln Capital IQ Consensus.
• This decrease of 9.2% primarily reflects a decline in comparable sales of 8.7%, driven by lower average dollar sale and a decline in transaction count.
• For the first quarter, gross margin was $237.4 million, or 40.7% of net sales, compared to $262.3 million, or 40.8% of net sales, in last year's first quarter.
• Guidance for FY17: Company anticipates a mid single-digit percentage decline in comparable sales. The Company expects gross margin as a percent of net sales to be flat to up to a 30 basis point increase for the year, with approximately flat SG&A leverage. On-hand inventory in each quarter is expected to be down compared to last year, as the Company continues to actively manage inventory. Capital expenditures are expected to be $60 million to $70 million for the year.