Chico's FAS Q2 Profit Tops Estimates, Shares Rise

Shares of

gained over 8 percent in pre-market trading after the company reported stronger-than-expected results for the second quarter on Wednesday. The Fort Myers, Florida-based company reported quarterly net income of $2.1 million, or $0.02 per share. Excluding one-time items, the company's earnings rose to $0.25 per share from $0.20 per share. Its revenue rose 1.4 percent year-over-year to $680.4 million from $671.1 million. However, analysts were expecting earnings of $0.22 per share on revenue of $675.56 million. The average estimate among 8 Estimize users was for earnings of $0.24 per share and revenue of $675.18 million. Its comparable sales rose 0.5 percent in the latest quarter. Gross margin expanded 140 basis points to 53.8 percent of net sales in the recent quarter. Selling, general and administrative expenses rose to $308.4 million from $304.7 million. At the end of the quarter, total inventories rose to $250.3 million, from $238.1 million last year. Chico's FAS announced its plans to sell the Boston Proper direct-to-consumer business and close its existing stores. Chico's FAS shares gained 8.46 percent to $15.00 in pre-market trading.