Post-Earnings Coverage - Chico's FAS

LONDON, December 18, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on Chico's FAS Inc. (NYSE: CHS). On November 25, 2014, the company reported its financial results for Q3 FY14 (period ended November 01, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Chico's FAS Inc. (Chico's). During Q3 FY14, the company's net sales grew 1.5% on a Y-o-Y basis. Further, Chico's reported Q3 FY14 net income of $26.46 million, compared to a net loss of $28.48 million in Q3 FY13. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

Chico's net sales during Q3 FY14 increased to $665.57 million from $655.58 million in Q3 FY13. However, the company's net sales fell short of Bloomberg analysts' forecasts of $672.90 million. The company informed that its net sales primarily reflected 87 net new stores for a square footage increase of 5.4%, partially offset by a 1.6% decline in comparable sales. The 1.6% decrease in comparable sales for Q3 FY14 followed a 1.4% decrease in Q3 FY13, and reflected a decrease in average dollar sale partially offset by an increase in transaction count. The free research on CHS can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Chico%27s%20FAS&d=18-Dec-2014&s=CHS

During Q3 FY14, the Chico's/Soma Intimates brands' comparable sales fell by 1.6%, following a decline of 3.3% in Q3 FY13. The Chico's brand witnessed a low single digit decrease in comparable sales in Q3 FY14, compared to a mid-single digit decrease in Q3 FY13, and the company's Soma Intimates brand reported a mid-single digit comparable sales increase in Q3 FY14, compared to a high-single digit increase in the preceding year. Further, Chico's White House | Black Market brand's comparable sales decreased 1.4% following a 2.5% increase in Q3 FY13. In addition, the company's Q3 FY14 gross margin declined to $363.79 million from $364.01 million in Q3 FY13. Chico's gross margin for Q3 FY14 decreased 80 basis points Y-o-Y to 54.7% of net sales, primarily reflecting increased promotional activity to sell through seasonal merchandise.

For Q3 FY14, selling, general and administrative expenses (SG&A) increased to $321.57 million from $308.53 million in Q3 FY13. During Q3 FY14, the company reported GAAP income from operations of $42.22 million, compared to a GAAP loss from operations of $16.98 million in Q3 FY13. On a per share basis, Chico's GAAP earnings for Q3 FY14 stood at $0.17 per basic and diluted share, compared to a GAAP loss of $0.18 per basic and diluted share reported in Q3 FY13. On an adjusted basis, Chico's reported Q3 FY14 earnings of $26.46 million, or $0.17 per diluted share, compared to $35.79 million, or $0.22 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report Q3 FY14 adjusted net income of $25.92 million, or $0.17 per diluted share. Sign up and read the free analyst's notes on CHS at:

http://get.Investor-Edge.com/pdf/?c=Chico%27s%20FAS&d=18-Dec-2014&s=CHS

Senior Vice President and CFO of Chico's, Todd E. Vogensen, stated that, in addition to the company's brand strategies, fiscal discipline is an important driver of value creation.  He added that the company remains focused on inventory management and ensuring SG&A and capital investments are aligned with meaningful growth opportunities.

Chico opened 38 new stores in Q3 FY14, and as of November 1, 2014, the company operated 1,557 stores in the US and Canada. 

Stock Performance  

On the day of the earnings release, November 25, 2014, Chico's stock ended the session at 16.14, up 1.96%. Although the stock has moved both ways since then, the losses have outweighed the gains so far. On the last close, Wednesday, December 17, 2014, Chico's shares finished 0.76% higher at $15.85. The company's shares vacillated between $15.46 and $15.94 during the session. A total of 3.51 million shares were traded, which was above its three months average volume of 1.97 million shares. The company's shares have advanced 4.76% in the last one month and 3.12% in the previous three months. However, the stock has declined 15.87% since the start of 2014. Shares in Chico's closed above their 50-day and 200-day moving averages of $15.24 and $15.74, respectively. Furthermore, the stock traded at a PE ratio of 23.69 and has a Relative Strength Index (RSI) of 55.67. Visit Investor-Edge and access the latest research on CHS at:

http://get.Investor-Edge.com/pdf/?c=Chico%27s%20FAS&d=18-Dec-2014&s=CHS

Sneak Peek to Corporate Insider Trading 

In the last one month Chico's has reported one insider transaction to the U.S. Securities and Exchange Commission (SEC). On November 23, 2014, Sheryl Clark, Brand President - Boston Proper (a product of Chico's) sold 10,052 shares, worth $159,123, at a price of $15.83 per share. Complimentary in-depth research on CHS is available at:

http://get.Investor-Edge.com/pdf/?c=Chico%27s%20FAS&d=18-Dec-2014&s=CHS

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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