Goldman Sachs Raises Chico's Estimates; PT Goes To $9

Goldman Sachs reports that Chico's FAS, Inc.'s CHS 3Q EPS of $0.16 beat FC of $0.15 “and our Street low $0.11.” “Compared to our estimates, sales added $0.01, better SG&A control added $0.03, and lower tax added $0.01,” Goldman Sachs writes. “Sales grew 8% with comps +3.1% vs. FC +1.4% (Chico's +1.5%, WH|BM +7.1%). Inventory/ft ex new stores was +4.5%, modestly ahead of comp trends. “Due primarily to better SG&A, we raise our 2010/11/12 EPS to $0.65/0.65/0.70 from $0.57/0.60/0.70. Based on our new estimates, we raise our 6-month, EV/EBITDA and P/E based price target to $9 from $8.” Chico's currently trades at $11.33.