Chico’s FAS’s Q2 Earnings Beat Estimates (CHS)

Specialty retailer, Chico’s FAS Inc.’s (NYSE:CHS) fiscal second-quarter earnings surpassed Street’s expectations as improved styles and pulsating designs helped the company to sell products at full prices.

For the second quarter ended July 28, the company’s earnings stood at $53.4 million, or 32 cents, up from $43.4 million, or 25 cents, in the year earlier quarter.

Revenue jumped 16% to $641.7 million from $551.45 million in the corresponding period of last year.

Analysts’ consensus estimate was at 30 cents on revenue of $641.3 million.

CHS reported that gross margins rose to 56.4% for the quarter.

The company’s consolidated same-store-sales for the quarter rose by 5.6%.

While Net sales from Chico’s/Soma Intimates stood at $415 million, up from $374 million in the year earlier quarter, net sales from White House/Black Market stood at $194 million, up from $177 million in the same period of last year.

Buoyed by strong results, the company has lifted the lower end of its full-year sales forecast to $2.55 billion from earlier estimations of $2.50 billion; however, the higher end of sales outlook was maintained at $2.60 billion. Analysts polled by Thomson Reuters are expecting full-year sales of $2.58 billion.

Following the earnings announcement, CHS stocks rose more than 7% in early trading on Wednesday.

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