Why Chico's FAS (CHS) Shares Are Gaining Today

Chico's FAS Inc CHS reported fourth-quarter FY22 sales growth of 5.6% year-on-year to $524.05 million, beating the estimate of $512 million.
Comparable sales for the quarter increased 6.1% versus last year.
Gross margin for the quarter expanded 40 basis points Y/Y to 34.9%. Operating margin was 1.3%, and operating income for the quarter plunged 58% to $6.9 million.
EPS of $0.06 decreased 33.3% from $0.09 last year.
CHS held $178.1 million in cash and equivalents as of Jan. 28, 2023.
At Q4 end, inventories totaled $276.8 million versus $323.4 million at the end of last year's Q4.
Molly Langenstein, Chico's FAS Chief Executive Officer and President, commented, "In the fourth quarter, we were pleased to see revenues and EPS exceed our expectations due to strong January performance. Across all three brands, customers responded to new spring product offerings, which drove full-price selling."
"In fiscal 2023, we will build on our standout fiscal 2022 results, and based on our January performance, we believe we're off to a great start."
Outlook: Chico's FAS sees Q1 sales of $535 million - $550 million and EPS of $0.26 - $0.30.
Chico's FAS expects FY23 sales of $2.22 billion - $2.25 billion and EPS of $0.79 - $0.91.
Price Action: CHS shares are trading higher by 21.01% at $5.99 on the last check Tuesday.
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Why Chico's FAS Shares Are Gaining Today