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:

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