Chico's Big Slide: Fool by Numbers

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Editor's note: The prior version of this article incorrectly stated that Chico's sales decreased. We apologize for the error.

On Nov 28, Chico's FAS (NYSE: CHS) released third-quarter earnings for the period ended Oct 28.

• Sales increased by 12.5% to $403.6 million, as comparable store sales for the company-owned stores dipped by 1.2%.
• Net income fell by 20.8% to $42.1 million, because of increased general, administrative, and store operating expenses, plus promotional pricing.
• Of the 438 investors who have rated Chico's in our new rating service, CAPS, 431 think it will outperform the S&P 500. Let us know what you think by bringing your opinion to CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q3 2006	Q3 2005	Change
Sales	$403.6	$358.7	12.5%
Net Profit	$42.1	$53.2	(20.8%)
EPS	$0.24	$0.29	(17.2%)
Diluted Shares	176.2	182.6	(3.5%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	59.7%	62.8%	(3.2)
Operating Margin	15.9%	23%	(7.1)
Net Margin	10.4%	14.8%	(4.4)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$253.9	$400.3	(36.6%)
Accounts Rec.	$19.3	$9.6	100.5%
Inventory	$137.7	$101.5	35.6%

	Q3 2006	Q3 2005	Change
Accounts Payable	$77.5	$67.5	14.8%
Long-Term Debt	$0.0	$0.0	N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	$214.0	$215.3	(0.6%)
Capital Expenditures	$165.1	$87.1	89.5%
Free Cash Flow	$48.9	$128.2	(61.9%)

Find out why Fools always follow the money.

Related Companies:

• Ross Stores (Nasdaq: ROST)
• Christopher & Banks (NYSE: CBK)
• Coldwater Creek (Nasdaq: CWTR)

Related Foolishness:

• Keeping an Eye on Chico's
• Chico's on the Cheap?
• Gap: In Bad Company

The Motley Fool Stock Advisor has recommended a number of fashion retailers. To see who they are, click here to take a free trial.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.