UPDATE: Chico's FAS Q2 Profit Misses Estimates, Shares Drop

Shares of Chico's FAS

dipped more than 5% in pre-market trading after the company reported downbeat fiscal second-quarter profit. The Fort Myers, Florida-based company posted quarterly earnings of $30.1 million, or $0.20 per share, compared to $43.6 million, or $0.27 per share, in the year-ago period. Its sales surged 3.3% to $671.1 million. However, analysts were projecting a profit of $0.26 per share on revenue of $678 million. Same-store sales gained 0.3%, versus analysts' expectations for a 0.5% growth. The Chico's/Soma Intimates brands' comparable sales climbed 1.4%, while the White House | Black Market brand's comparable sales slipped 1.9% in the quarter. The Chico's brand posted a gain of slightly less than 1% in comparable sales, while the Soma Intimates brand's comparable sales rose by mid-single digit in the quarter. Its gross margin shrank to 52.4% versus 54.8%. At the end of the quarter, total inventories per selling square foot rose 2.5%. During the quarter, Chico's FAS repurchased 0.6 million shares for $10.0 million under its $300 million share repurchase program. Chico's FAS shares slipped 5.24% to $15.18 in pre-market trading.