- Chico's FAS, Inc. CHS reported Q1 revenue of $534.74 million, down 1.1% year-on-year, missing the Street view of $541.95 million.
- Comparable sales for the quarter decreased 0.6% versus last year.
- For the first quarter, gross profit was $225 million, or 42.1% of net sales. The 210-basis-point increase in gross margin primarily reflects higher average unit retail, lower inbound freight costs, and corporate expense savings.
- EPS of $0.32 increased 14.3% Y/Y, beating the estimate of $0.27.
- CHS held $131 million in cash and equivalents as of quarter-end. At Q1 end, inventories totaled $293.78 million.
- Molly Langenstein, Chico's FAS Chief Executive Officer and President, commented, "We believe Chico's is positioned for continued outsized growth, as it is the fastest growing apparel brand for customers over 45 with household incomes over $100,000, according to Circana. Chico's is also expanding its demographic appeal, attracting new customers with an average age 10 years younger than existing customers."
- "We are confident in our brand strategy and our ability to deliver on our long-term financial targets, as we continue to navigate the current macroeconomic environment."
- Outlook: Chico's FAS sees Q2 sales of $545 million-$565 million vs. $573.2 million estimate and EPS of $0.25-$0.30 vs $0.30 EPS estimate.
- Chico's FAS lowered the FY23 outlook. The company expects FY23 sales of $2.175 billion-$2.205 billion (prior guidance: $2.22 billion - $2.25 billion) vs. $2.22 billion consensus.
- FY23 EPS is expected to be $0.70-$0.82 (previous guidance: $0.79-$0.91) vs. $0.83 estimate.
- Price Action: CHS shares are trading higher by 5.73% at $5.17 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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