-=Chico's FAS (CHS) reported earnings on Wed 30 May 2018 (b/o)

Chico's FAS misses by $0.03, beats on revs; Q1 comps -5.9% 

• Reports Q1 (Apr) earnings of $0.23 per share, $0.03 worse thanthe Capital IQ Consensus of $0.26; revenues fell 3.8% year/year to $561.8 mln vs the $551.99 mln Capital IQ Consensus.
• This decrease of 3.8% primarily reflects a comparable sales decline of 5.9% and the impact of 41 net store closures since last year's first quarter, partially offset by the favorable impact of the calendar shift due to the 53rd week in fiscal 2017.
• Q2 Guidance: For second quarter fiscal 2018, the Company is anticipating a mid-to-high single digit decline in net sales and a low-to-mid single digit decline in consolidated comparable sales. The Company expects gross margin rate as a percentage of net sales to be approximately flat compared to second quarter fiscal 2017. (Q2 Capital IQ consensus for net sales calls for a decline of -4.1%)
• For full-year fiscal 2018, the Company is anticipating a mid-single digit decline in net sales and a low-to-mid single digit decline in consolidated comparable sales (prior guidance low single digit decline in comps, Capital IQ consensus for net sales calls for a decline of 3.9%). The Company expects gross margin rate expansion in the range of 50 to 75 basis points over fiscal 2017 (prior guidance called for 125-150 bps above FY17).