Earnings miss on 2/28/2014.
Chico's Falls on Q4 Earnings Miss - Analyst Blog
9:50a ET February 28, 2014 (Zacks.com) Print Shares of Fort Myers, Florida-based specialty retailer,
Chico's FAS, Inc. (
CHS) fell 8.5% yesterday after the company posted disappointing fourth-quarter and fiscal 2013 results. The company’s adjusted earnings per share of 4 cents and 85 cents for the fourth quarter and fiscal 2013 respectively fell 80% and 22% from the year-ago comparable periods.
Moreover, the company’s bottom-line results for the fourth quarter and fiscal 2013 came below the Zacks Consensus Estimate of 16 cents and 97 cents per share, respectively. The year-over-year decline in bottom results was mainly due to lower sales and higher operating expenses.
Adjusted earnings for fourth-quarter fiscal 2013 did not include tax charges related to non-cash goodwill impairment charge of Boston Proper while for fourth-quarter fiscal 2012, non-recurring acquisition and integration costs were excluded.
After incorporating these charges, the company reported break-even earnings for the fourth quarter of fiscal 2013 against 19 cents per share reported in the fourth quarter of fiscal 2012. For fiscal 2013, on a reported basis, the company posted earnings per share of 41 cents versus $1.08 in fiscal 2012.
Net sales decreased 6.4% year over year to $610.2 million in the quarter and lagged the Zacks Consensus Estimate of $655.0 million. The top line in the quarter was negatively impacted by cautious consumer spending behavior and unfavorable weather conditions.
Net sales during fiscal 2013 improved marginally to $2,586.0 million from $2,581.1 million in fiscal 2012. However, fiscal 2013 sales remain below the Zacks Consensus Estimate of $2,630.0 million.