Stock Monitor: Francesca's Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 09, 2018 / Active-Investors.com has just released a free earnings report on Chico's FAS, Inc. (NYSE: CHS) ("Chico's"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CHS. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 23, 2018. The clothing chain outperformed top- and bottom-line expectations, and also provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Chico's FAS most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fourteen weeks ended February 03, 2018 (Q4 2017), Chico's reported net sales of $587.8 million compared to $600.8 million in the thirteen weeks ended January 28, 2017 (Q4 2016), reflecting a drop of 2.2% on a y-o-y basis, primarily reflecting a comparable sales decline of 5.2% and a decrease in selling square footage in FY17, partially offset by the $29 million benefit of the 53rd week. The Company's revenue numbers beat analysts' estimates by $8.03 million.
For the fifty-three weeks ended February 03, 2018 (FY17), Chico's net sales were $2.3 billion compared to $2.5 billion in FY16. This represented a drop of 7.8% on a y-o-y basis, primarily reflected by a comparable sales decline of 7.7% and a decrease in selling square footage in FY17, partially offset by the $29 million benefit of the 53rd week.
During Q4 2017, Chico's gross margin was $221.6 million, or 37.7% of net sales, compared to $213.4 million, or 35.5% of net sales, in Q4 2016, up 220 basis points, primarily reflecting a 170-basis point improvement in merchandise margin, driven by the lower average unit costs and a reduction in store occupancy costs. The Company's selling, general, and administrative expenses (SG&A) were $192.0 million, or 32.7% of net sales, in the reported quarter compared to $192.0 million, or 31.9% of net sales, in the prior year's same quarter.
For Q4 2017, Chico's reported a net income of $28.0 million, or $0.22 per diluted share, compared to $13.5 million, or $0.10 per diluted share, in Q4 2016. The Company's reported quarter results included the favorable impact of the Tax Cuts and Jobs Act 2017 (TCJA) of approximately $10 million after-tax, or $0.08 per diluted share, as well as the benefit of the 53rd week of approximately $4 million after-tax, or $0.03 per diluted share. Chico's earnings results beat Wall Street's estimates of $0.09 per share.
For FY17, Chico's reported a net income of $101.0 million, or $0.79 per diluted share, compared to $91.2 million, or $0.69 per diluted share, in FY16. The Company's results for FY17 included the favorable impact of the TCJA of approximately $10 million after-tax, or $0.08 per diluted share, as well as the benefit of the 53rd week of approximately $4 million after-tax, or $0.03 per diluted share. The Company's results for FY16 included the unfavorable impact of restructuring and strategic charges and Boston Proper of $15.4 million after-tax, or $0.12 per diluted share.
At the end of Q4 2017, Chico's inventories totaled $233.7 million compared to $232.4 million at the end of Q4 2016. The Company's inventories at the end of the reported quarter increase to $16.5 million due to a change in shipping terms with a supplier in FY17.
Share Repurchase Program
During Q4 2017, under Chico's $300.0 million share repurchase program announced in November 2015, the Company repurchased 0.2 million shares for $1.7 million, at a weighted average of $8.66 per share, with $136.2 million remaining under the program. During FY17, the Company repurchased a total of 2.7 million shares for $27.4 million, at a weighted average of $10.16 per share.
For the full fiscal year 2018, Chico's is anticipating a low single-digit decline in consolidated comparable sales, with comparable sales performance stronger in H2 2018 compared to the first half of FY18.
For FY18, Chico's is forecasting gross margin expansion to be in the range of 125 to 150 basis points versus FY17. The Company also anticipates SG&A to be relatively flat compared to FY17.
Stock Performance Snapshot
April 06, 2018 - At Friday's closing bell, Chico's FAS' stock marginally climbed 0.61%, ending the trading session at $9.92.
Volume traded for the day: 3.53 million shares, which was above the 3-month average volume of 2.94 million shares.
Stock performance in the last month – up 6.78%; previous three-month period – up 14.29%; past six-month period – up 13.37%; and year-to-date – up 12.47%
After last Friday's close, Chico's FAS' market cap was at $1.26 billion.
Price to Earnings (P/E) ratio was at 14.03.
The stock has a dividend yield of 3.43%.
The stock is part of the Services sector, categorized under the Apparel Stores industry.
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