Chico's Profit, Revenue Fall Short of Estimates; Shares Fall
November 24 2015 - 10:00AM
Dow Jones News
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
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 24, 2015 09:45 ET (14:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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