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Chico's plunges after sales and margins disappoint

Published 08/30/2017, 07:52 AM
Updated 08/30/2017, 07:52 AM
© Reuters.  Chico's plunges after sales and margins disappoint
  • Chico's FAS (NYSE:CHS) reports comparable sales fell 8.4% in Q2 as negative comps were recorded for the White House Black Market, Chico's and Soma brands.
  • Gross margin came in at 36.1% of sales vs. 37.9% a year ago and 37.4% consensus. SG&A expenses rose 60 bps to 30.0% of sales.
  • "Second quarter sales were disappointing, and we are taking decisive actions to adjust our assortments and enhance omni-channel capabilities in bellwether categories such as Jackets at Chico's and Dresses at White House Black Market," says CEO Shelley Broader.
  • Looking ahead, Chico's expects comparable sales to be down high single-digits in FY17 with gross margin rate decreasing by approximately 75 to 100 basis points.
  • Previously: Chico's FAS misses by $0.03, misses on revenue (Aug. 30)
  • CHS -12.90% premarket to $6.82.
  • Now read: The Silence Speaks Volumes - Today's Stock Market Factors


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