Chico's FAS Sees Positive Q2 Profit Increase
Shares of Chico's FAS saw a significant rise in value as the company announced an improved annual earnings forecast and reported higher profits for the second quarter. Early trading on Tuesday showed the stock up 6% at $5.43, with a year-to-date increase of 10%.
Upgraded Earnings Guidance
Chico's FAS, a renowned fashion retail company, revised its earnings forecast to a range of 87 cents to 95 cents per share, compared to the previous guidance of 70 cents to 82 cents. The company also adjusted its annual sales projection to $2.15 billion to $2.18 billion, down from the previous range of $2.18 billion to $2.21 billion.
Q3 Expectations
For the upcoming third quarter, Chico's anticipates earnings of 8 cents to 12 cents per share on sales between $505 million and $525 million. In the same quarter last year, the company reported earnings of 20 cents per share on sales worth $518 million.
Strong Q2 Results
Chico's posted a second-quarter profit of $59.3 million, or 49 cents per share, compared to $42 million, or 34 cents per share, during the same period last year. After excluding one-time items, adjusted earnings were recorded at 28 cents per share.
While there was a slight decline in sales of 2.4% to $545.1 million, comparable sales, which account for store openings and closings, decreased by 3% primarily due to reduced transactions. Nonetheless, the average size of each sale increased.
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