U.S. women apparel retailer Chico’s FAS Inc. (CHS), released first quarter financial results on Wednesday, showing that the first quarter net profit rose 17%, benefitting from the growth in customer traffic and average spending, the company also raised its full-year revenue guidance.
As of the fiscal quarter ended April 28, the company grew net profit from a year earlier of $45.9 million, or 26 cents a share, to $53.6 million, or 32 cents a share, higher than the average estimate of 30 cents of analysts polled by Factset survey.
Revenue increased 21%, from a year earlier of $537 million to $651 million, higher than the consensus estimate of $628 million. Chico’s said that compared with the same period of the last year, there were more promotional activities being held and more stores being opened. In addition, the women apparel chain Boston Proper which was acquired in September last year contributed $33.70 million to the revenues.
The company’s same-store sales rose 9.6%, among which Chico’s and Soma Intimates stores increased by 8.8% and White House Black Market added 11.3%..
Looking forward, the company expects the full-year revenue of $2.5 billion-$2.6 billion, higher than the previous forecast of $2.5 billion. Analysts on average have expected the company’s fiscal year revenue of $2.53 billion. However, the company forecasts a decline in the full-year profit margin.
Boosted by the better-than-expected first quarter earnings report, Chico’s FAS stock price added 3.75%, or $0.55, to report at $15.21. Over the past 52 weeks, Chico’s FAS stock prices traded between $9.57 – $16.50 per share and the current stock price is 8% off the highest level.