Chico's FAS Q3 Earnings Top Estimates

Chico's FAS Inc CHS reported third-quarter FY21 sales growth of 29.1% year-on-year, to $453.64 million, beating the analyst consensus of $426.10 million.
The comparable sales increased 27.9% versus last year. Comparable sales declined 2.7% versus Q3 FY19, with Soma improving 43.5% and Chico's and WHBM decreasing 16.2% and 4.9%, respectively.
The gross margin for the quarter expanded 1870 basis points Y/Y to 40.7%. The operating margin was 4.9%, and operating income for the quarter was $21.9 million.
Adjusted EPS of $0.18 beat the analyst consensus of $(0.02).
The company held $137.5 million in cash and equivalents as of October 30, 2021.
At Q3 end, inventories totaled $277.7 million versus $256.5 million at the end of last year's Q3 and $277.5 million at the end of Q3 FY19.
Outlook: Chico's FAS sees Q4 sales of $495 million - $510 million, above the consensus of $481.75 million. The company expects Q4 EPS of $0.00- $0.05.
Price Action: CHS shares are trading higher by 3.24% at $5.71 on the last check Tuesday.

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