The 10-second takeaway
For the quarter ended April 28 (Q1), Chico's FAS beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased significantly.
Margins dropped across the board.
Chico's FAS reported revenue of $650.8 million. The 14 analysts polled by S&P Capital IQ expected revenue of $628.9 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $537.2 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 $0.33. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.32 for Q1 were 23% higher than the prior-year quarter's $0.26 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 58.2%, 90 basis points worse than the prior-year quarter. Operating margin was 13.4%, 40 basis points worse than the prior-year quarter. Net margin was 8.2%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $637.3 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $2.61 billion. The average EPS estimate is $1.06.
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 $16.24.
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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.