The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Chico's FAS beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins increased, and net margins were steady.
Chico's FAS notched revenue of $569.2 million. The 18 analysts polled by S&P Capital IQ expected a top line of $547.5 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $475.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share. GAAP EPS of $0.15 for Q4 were 36% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.3%, 90 basis points worse than the prior-year quarter. Operating margin was 6.8%, 20 basis points better than the prior-year quarter. Net margin was 4.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $629.5 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $2.57 billion. The average EPS estimate is $1.02.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chico's FAS is outperform, with an average price target of $12.82.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.