Chico's FAS Q3 Earnings Top Estimates Helped By Apparel Sales

Chico's FAS Inc CHS reported third-quarter FY22 sales growth of 14.3% year-on-year to $518.33 million, beating the consensus of $508.00 million.
Comparable sales for the quarter increased 16.5% versus last year.
Gross margin for the quarter contracted 70 basis points Y/Y to 40%. Operating margin was 6.1%, and operating income for the quarter was $32 million.
EPS of $0.20 beat the analyst consensus of $0.13.
CHS held $140.7 million in cash and equivalents as of October 29, 2022. The company had a debt of $69 million at the end of Q3.
At Q3 end, inventories totaled $304.1 million versus $277.7 million at the end of last year's Q3.
Outlook: Chico's FAS sees Q4 sales of $535 million - $555 million (consensus $557 million) and EPS of $0.07- $0.10 (consensus $0.10).
Chico's FAS raised the FY22 EPS outlook from $0.79 - $0.87 to $0.89 - $0.92 versus the estimate of $0.85.
CHS raised FY22 sales guidance from $2.14 billion - $2.17 billion to $2.153 billion - $2.173 billion, against the Street view of $2.17 billion.
Price Action: CHS shares are trading lower by 6.61% at $6.64 on the last check Tuesday.