Chico’s miss expectatio​ns with 3Q $26.5 million

Chico's FAS, Inc. posted third-quarter net income of $26.5 million or $0.16 per share compared to $28.8 million or $0.16 per share last year. The beloved womenswear brand missed analysts’ expectations, as market waited for $0.20 per

share instead.

Net sales for the three-month period rose 11.5% to $538.5 million from $483 million in the prior year. Consolidated comparable sales increased 3.7% for the quarter following a 5.5% increase for the same period last year reflecting increases in average dollar sale and transaction count.

Analysts polled by Thomson Reuters expected the company to earn $0.20 per share on revenues of $548.89 million for the quarter. Analysts' estimates typically exclude special items.

Chico's FAS' profit has risen year over year by an average of 29.3% over the past five quarters. Revenue has now gone up for three straight quarters.

Separately and as part of an ongoing commitment to return value to its shareholders, Chico's FAS, Inc. CHS -4.82% today announced that its Board of Directors authorized the repurchase of up to $200 million of the Company's outstanding common stock, effective November 23, 2011. This program replaces the now cancelled August 2010 $200 million program in its entirety that had $24.2 million remaining.

Repurchases under the program will be made in open market or privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18. As they explained in a note to investors, the company intends to fund the repurchase program from cash on hand and retire any shares repurchased.

Chico’s, however, has no obligation to repurchase shares under this authorization, and the timing, actual number and value of shares to be purchased will depend on the performance of Chico's stock price and other market conditions.


Angela Gonzalez-Rodriguez