Chico's FAS Posts In-Line Q1 Earnings, But Sales Miss Views

reported in-line earnings for the first quarter, but the company's sales missed analysts' estimates. The Fort Myers, Florida-based company posted a quarterly profit of $32.5 million, or $0.22 per share, compared to $39.9 million, or 0.26 per share, in the year-ago period. Excluding items, the company earned $0.28 per share. Its revenue gained 1.7 percent year-over-year to $693.3 million from $681.6 million. However, analysts were expecting a profit of $0.28 per share on revenue of $713 million. The average estimate among 8 Estimize users was for earnings of $0.15 per share and revenue of $664.59 million. Its comparable sales slipped 0.1 percent in the quarter, versus a 2.6 percent drop in the year-ago quarter. Gross margin rose 90 basis points to 57.1 percent of net sales. Selling, general and administrative expenses climbed to $328.2 million from $319.0 million. At the end of the quarter, total inventories per selling square foot dropped 2.8 percent year-over-year. Chico's FAS shares dropped 6.10 percent to $15.70 in pre-market trading.