Fri. Nov 15th, 2019

Chico’s shares rise after Soma brand shines

1 min read

Chico’s Fas. Inc.

CHS, -17.11%

stock rose 3.6% in Wednesday premarket trading after the women’s clothing and apparel retailer reported second-quarter same-store sales at the Soma lingerie brand that exceeded expectations. The company had a net loss of $2.3 million, or 2 cents per share, after net income of $16.8 million, or 13 cents per share, last year. Adjusted earnings were breakeven, matching the FactSet consensus. Revenue of $508.4 million was down from $544.7 million last year and below the $513.0 million FactSet guidance. Chico’s portfolio includes the namesake brand, and White House Black Market, in addition to Soma. Same-store sales fell 6.1% for the total company, with the Soma brand showing a same-store sales increase of 10.9%. The FactSet outlook was for a 4.9% overall same-store sales decline. Chico’s expects a low-to-mid-single digit decline in both net sales and same-store sales for the third quarter. The FactSet guidance is for sales of $489.1 million, which implies a 2.1% decline, and a 0.7% drop in same-store sales. Chico’s expects full-year sales and same-store sales to fall in the mid-single digits compared with previous guidance for a low-to-mid-single digit decline. The FactSet outlook is for sales of $2.03 billion, which implies a 4.8% decline, and 3.3% same-store sales decline. Chico’s stock has plummeted 71.5% over the past year while the S&P 500 index

SPX, -0.32%

is down 1% for the period.

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