By Austen Hufford 

Chico's FAS Inc., reported worse-than-expected revenue and adjusted earnings for its latest quarter Tuesday as both transaction count and average price per transaction fell.

Shares of the company dropped 9.7% in premarket trading to $11 a share.

The company also announced a new share buyback of up to $300 million and raised its quarterly dividend by 3.3% to 7.75 cents per share.

Earlier this year, the company unveiled plans to cut capital spending, accelerate store closures and cut jobs. The move was made after private-equity firm Sycamore Partners dropped its bid to buy Chico's because it couldn't line up financing. The company said in October that Wal-Mart Stores Inc. veteran Shelley Broader would become its chief executive at the start of December.

The company posted a loss of $11.6 million, or 9 cents a share, compared with a $26.5 million profit, or 17 cents a share, a year prior

Excluding charges related to the restructuring and the previously announced selling of its direct-to-consumer Boston Proper business, earnings fell to 13 cents a share from 19 cents the year before. Revenue fell 3.7% to $641 million.

Analysts surveyed by Thomson Reuters expected adjusted profit of 20 cents a share on revenue of $667 million.

Sales at existing locations fell 3.3%.

In addition to its namesake stores, Chico's has other brands, including White House Black Market and lingerie label Soma. Chico's namesake brand posted a 4.7% fall in sales to $220 million while revenue in the White House, Black Market segment edged down 2% to $72 million. Sales in the Soma Intimates brand fell 0.9% to $17 million.

Women's clothing has been among the most troubled retail segments in recent years. In the last few years, a number of women's clothing chains have either scaled back or closed.

Write to Austen Hufford at austen.hufford@wsj.com

 

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(END) Dow Jones Newswires

November 24, 2015 09:45 ET (14:45 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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