In a rough-and-tumble quarter for retailers, Chico’s FAS (CHS) came out ahead, beating analysts’ earnings expectations and projecting strength into 2012. Shares rose 15% in morning trading.
Chico’s posted 15 cents of EPS, four cents ahead of expectations. Same store sales rose 8.7%. In a quarter when many retailers sacrificed margins to move merchandise, Chico’s saw a relatively small fall-off in gross margin — down 90 basis points –� indicating that it was able to sell many items at or near full price.
Chico’s sells women’s clothing clothing and accessories, and appears to be benefiting from its recent acquisition of online retailer Boston Proper.
The company expects sales to grow to $2.5 bilion in 2012, above analsyts’ expectations.
“Top-line sales are planned to grow in the mid teens, with margins decreasing slightly and expenses growing somewhat slower than sales,” wrote Stifel Nicolaus analyst Richard Jaffe.
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