===Chico's FAS (CHS) acquired by Sycamore Partner for $7.60/share

Chico's FAS announces the completion of its acquisition by Sycamore Partner for $7.60/share in an all-cash transaction valued at approximately $1 billion

 

=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.

-=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). 

Long trade : CHS +13% (4/18)

CHS beat earnings expectations, made a move to a fresh high, then pulled back to its 200 day moving average, presenting a high reward to risk trading opportunity.

a.  March 23:  #1, 4-6, 8, 10, 26, 52, 58, 95;  vol. 2.9M;  $8.93  +13%
b. Apr. 4:  #12; vol. 2.7M   +6% 

  

Chico's FAS (CHS) reported earnings on Wed 28 Feb 2018 (b/o)

** charts after earnings **

  

• 6 weeks later

Chico's FAS beats by $0.05, beats on revs 

• Reports Q4 (Jan) earnings of $0.14 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.09; revenues fell 2.2% year/year to $587.78 mln vs the $579.75 mln Capital IQ Consensus.
• Reports a SSS decline of 5.2% compared to expectations of a 5-7% decline.
• 2018 Full-Year Outlook
  • For fiscal 2018, the Company is anticipating a low single-digit decline in consolidated comparable sales with comparable sales performance stronger in the second half of the year compared to the first half.
  • The Company expects gross margin expansion in the range of 125 to 150 basis points over fiscal 2017, driven by decreased average unit costs and planned improvement in promotions.
  • The Company estimates a fiscal 2018 tax rate in the range of 26% to 28%.
  • Company anticipates 2018 capital expenditures to be $70 million to $80 million, primarily driven by store reinvestments and technology enhancements.

This week's biggest % winners & losers : May 22 - 26, 17 (wk 21)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: PBYI (79.75 +110.98%), AERI (55.9 +36.18%), MNKD (1.52 +34.51%), CO (9.09 +16.99%)
• Materials: RYAM (16.05 +21.87%), GSM (10.76 +16.83%)
• Industrials: TGI (33.25 +44.88%), TITN (17.39 +14.79%)
• Consumer Discretionary: MOD (15.2 +22.58%), GES (11.67 +18.6%), TLYS (10.15 +18.57%), BBY (58.97 +14.88%)
• Information Technology: PSTG (12.74 +28.17%), NTNX (19.59 +22.44%), STMP (141.5 +17.09%), CMCM (12.24 +16.02%)
• Financials: AFSI (14 +15.42%)
• Consumer Staples: BG (82.17 +17.92%), BRFS (14.19 +15.18%)
• Telecommunication Services: NIHD (0.74 +39.63%)

This week's top 20 % losers

• Healthcare: ARDX (4.6 -24.28%), CERS (2.35 -21.67%), LJPC (29.02 -14.65%), ALXN (97.7 -14.18%), SRPT (30.01 -13.37%)
• Materials: FRTA (7.98 -24.29%)
• Industrials: DY (82.75 -22.36%)
• Consumer Discretionary: GCO (36.75 -18.42%), CHS (9.37 -16.56%), ASNA (1.73 -16.02%), SIG (49.31 -15.92%), BZH (12.9 -13.94%), IGT (18.22 -13.24%)
• Energy: ANW (5.1 -50.49%), BRS (7.36 -48.1%), SND (10 -21.26%), NBR (8.75 -16.83%), NAT (5.97 -15.08%), FMSA (5.03 -14.89%)
• Consumer Staples: SPTN (30.82 -13.72%)

=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.

=Chico's FAS (CHS) reported earnings on Wed 22 Feb 2017 (b/o)

Chico's FAS beats by $0.01, beats on revs; sees low single-digit FY17 comp decline with gross margin leverage :

• Reports Q4 (Jan) earnings of $0.05 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.04; revenues fell 4.9% year/year to $600.8 mln vs the $594.29 mln Capital IQ Consensus, including $16.8 million related to Boston Proper last year. When excluding Boston Proper from fiscal 2015, net sales decreased 2.3%, primarily reflecting a decline in comparable sales of 2.5%, comprised of reduced transaction count and an increase in average dollar sale. Fourth quarter average unit retail increased primarily due to a reduction in promotional activity.
• Gross margin was $213.4 million, or 35.5%, compared to $217.4 million, or 34.4%, in last year's fourth quarter. When excluding Boston Proper from fiscal 2015, gross margin increased 80 basis points in fiscal 2016 compared to gross margin of $213.3 million, or 34.7%, last year. This 80 basis point increase from the 2015 adjusted gross margin rate primarily reflects reduced promotional activity, partially offset by an increase in incentive compensation.
• At the end of the fourth quarter of 2016, inventories totaled $232.4 million compared to $233.8 million last year.
• During the fourth quarter of 2016, the Company repurchased 1.6 million shares for $20.0 million, at an average of $12.81 per share, under its $300.0 million share repurchase program announced in November 2015, with $163.6 million remaining under the program.

2017 Full-Year Outlook

• For fiscal 2017, the Company is anticipating a low single-digit percentage decline in comparable sales as the Company continues to rationalize its promotional activity.
• The Company expects to achieve gross margin leverage for the year, primarily due to reduced promotional activity and savings from the supply chain initiative launched last year. The Company is planning modest SG&A leverage.
• Overall, the Company is anticipating steady improvement in operating margin that will advance its progress toward its target of double digit operating margin in 2019.

=Chico's FAS (CHS) reported earnings Wed 31 Aug 016 (b/o)

After a dismal first-quarter fiscal 2016, Chico's FAS Inc. (CHS) recorded better-than-expected bottom-line results for the second quarter. Also, the company’s revenues came in line with the Zacks Consensus Estimate. However, both the top and bottom lines fell year over year.

Chico’s adjusted earnings of 25 cents per share outpaced the Zacks Consensus Estimate of 22 cents but dropped 3.8% on a year-over-year basis. On a GAAP basis, it reported earnings of 17 cents a share compared with 2 cents in the year-ago quarter.

=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.

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.

CHS — is it a buy?

• Nov. 24:  Is CHS a buy right after earnings?  (Answer below)

** charts after earnings **

  

 (Answer below)

• One month later:

Chico's FAS (CHS) reported earnings Tue 24 Nov 2015 (b/o)

** charts after earnings **

  

Chico's FAS misses by $0.07, misses on revs; Announces $300 mln share buyback:

• Reports Q3 (Oct) earnings of $0.13 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus of $0.20; revenues fell 3.7% year/year to $641.2 mln vs the $666.66 mln Capital IQ Consensus. 
• Comp store sales decreased 3.3% y/y compared to a decrease of 1.6% in prior year period, reflecting a decrease in average dollar sale and transaction count.
• Gross margin was 54.7% of net sales in the third quarter, in line with the same period last year.
• Total inventories decreased 4.8% compared to $294.2 million in last year's third quarter, primarily reflecting improved inventory management.
• Co approved a new $300 million share repurchase authorization for the Company's common stock and canceled the remainder of its December 2013 share repurchase program.

CHS : buyout rumor

• Two months later: