Chico's FAS (CHS) Set to Report Q3 Earnings: What to Expect
We expect Chico's FAS, Inc. CHS to register a year-over-year decline in its top and bottom-line performances when it releases third-quarter fiscal 2023 results on Nov 28, before market open. The Zacks Consensus Estimate for earnings for the fiscal third quarter is currently 10 cents per share, which shows a decrease of 50% from the year-ago quarter. The consensus mark has been stable in the past 30 days.
The company has delivered an earnings surprise of 24%, on average.
The consensus estimate for quarterly revenues is currently pegged at $512.7 million, indicating a drop of 1.1% from the year-ago period’s reported figure.
Key Factors to Note
Chico's FAS’s quarterly performance is likely to be hurt by a tough macroeconomic environment, including headwinds like inflationary pressures and foreign currency fluctuations. These factors, coupled with any deleverage in selling, general and administrative expenses, are expected to have affected CHS’s performance in the fiscal third quarter.
On its last earnings call, management had projected consolidated net sales to be $505-$525 million. Further, it guided the gross margin to be 38.5-39% and SG&A, as a rate of net sales, to be 35.1-35.6% for the quarter under review. Management had envisioned earnings per share of 8-12 cents, down from 20 cents a share earned in the year-earlier quarter.
The Zacks Consensus Estimate for sales across Chico’s, Soma and White House Black Market brands is currently pegged at $252 million, $105 million and $155 million, respectively. These figures reflect corresponding decreases of 1.2%, 0.9% and 1.3% year over year. The consensus mark for comparable sales shows that the metric will decline 3% in the fiscal third quarter.
On the flip side, the company remains focused on efficiently managing expenses and boosting growth. Also, it has been experiencing immense strength in its brands, thanks to continuous enhancements in product and marketing. These factors are likely to have provided some cushion to the company’s performance during the quarter under discussion.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Chico's FAS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as explained below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Chico's FAS, Inc. Price and EPS Surprise
Chico's FAS, Inc. price-eps-surprise | Chico's FAS, Inc. Quote
Chico's FAS currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Build-A-Bear Workshop BBW currently has an Earnings ESP of +0.66% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year.
Build-A-Bear Workshop’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the year-ago quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
Five Below FIVE currently has an Earnings ESP of +3.68% and a Zacks Rank of 3. FIVE is likely to register top-line improvement when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $726 million, calling for growth of 12.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 23 cents suggests a 20.7% decrease from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 29.2%, on average.
Costco COST currently has an Earnings ESP of +3.00% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.43 suggests an increase of 10.7% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Chico's FAS, Inc. (CHS) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
