=Chico's FAS (CHS) reported earnings on Wed 28 Nov 18 (b/o)

Chico's FAS misses by $0.03, misses on revs; Q3 comps -6.8%; sees mid-teen decline in Q4 net sales; sees high single-digit decline in Q4 comps

• Reports Q3 (Oct) earnings of $0.05 per share, $0.03 worse than the S&P Capital IQ Consensus of $0.08; revenues fell 6.1% year/year to $499.9 mln vs the $515.63 mln S&P Capital IQ Consensus.
• Q3 Comps -6.8% versus -8.2% last year
• Q4 Guidance: The Company expects to see some immediate benefit from its Chico's brand performance improvement actions in the fiscal 2018 fourth quarter. Given the timing of adjustments that are now being made, the Company expects it to be spring of fiscal 2019 before meaningful improvement in the Chico's brand performance is visible in the Company's results. For the fiscal 2018 fourth quarter, the Company anticipates a mid-teen decline in net sales (Capital IQ consensus -3.1%), which includes the negative impact of the 53rd week of $29 million in fiscal 2017, and a high single-digit decline in consolidated comparable sales. The Company anticipates gross margin rate as a percent of net sales to decline approximately 400 to 500 basis points in the fiscal 2018 fourth quarter compared to the fiscal 2017 fourth quarter, primarily driven by our omni-channel programs and deleverage of fixed costs from lower sales.