UPDATE: Chico's FAS Beats Q4 Views, Shares Rise

Shares of

surged more than 4% in pre-market trading after the company reported better-than-expected earnings for the fourth quarter. The company plans to close around 120 stores by 2017 and around 35 stores in 2015. Chico's projects to reduce capital expenditures to $100 million in fiscal 2015. The Fort Myers, Florida-based company posted a quarterly loss of $31.8 million, versus a year-ago loss of $348,000. Its per-share loss came in at $0.21, versus flat per-share earnings. Excluding items, the company earned $0.05 per share. Its sales climbed 7.6% to $656.9 million. However, analysts were expecting a profit of $0.02 per share on revenue of $639.93 million. Sales at existing locations surged 4.3% in the quarter, versus a 3.4% drop during the year-ago period. Chico's brand reported a 1.2% rise in sales, while sales for the White House, Black Market brand gained 5.4%. The Soma Intimates brand posted a 13.7% gain in sales. Chico's FAS lifted its quarterly cash dividend by 3.3% to $0.0775 per share. Chico's gross margin narrowed to 50% from 50.7%. At the end of the quarter, total inventories per selling square foot slipped 5.7%. David Dyer, President and Chief Executive Officer, Chico's FAS, said, "Overall, we are pleased with our fourth quarter performance. The actions we have taken delivered positive comparable sales across all brands, an increase in gross margin dollars and lower inventory levels. While the overall apparel retail environment remains challenging, we expect the new capital allocation and cost reduction initiatives announced today will further strengthen Chico's FAS and its brands." Chico's shares climbed 4.55% to $18.15 in pre-market trading.