Chico's FAS Posts Mixed Q4 Results, Provides Upbeat Outlook

  • Chico's FAS Inc CHS reported fourth-quarter FY21 sales growth of 28.5% year-on-year, to $496.26 million, missing the consensus of $498.70 million.
  • Sales growth primarily reflects the decline in store sales during last year's Q4 due to the COVID-19 pandemic and higher full-price sales.
  • Comparable sales increased 29.2% versus last year, with Chico's, WHBM, and Soma up 33.2%, 45.6%, and 9.5%, respectively.
  • The gross margin for the quarter expanded 1550 basis points Y/Y to 34.5%. The operating margin was 3.3%, and operating income for the quarter was $16.5 million.
  • EPS of $0.09 beat the consensus of $0.05.
  • The company held $115.1 million in cash and equivalents as of January 29, 2022.
  • At Q4 end, inventories totaled $323.4 million versus $204 million at the end of Q4 FY20 and $246.7 million at the end of Q4 FY19. 
  • Outlook: Chico's FAS sees Q1 sales of $485 million - $500 million and EPS of $0.07- $0.11.
  • Chico's sees FY22 sales of $2.085 billion -$2.115 billion and EPS of $0.40 - $0.50.
  • Price Action: CHS shares are trading higher by 0.85% at $4.74 on the last check Tuesday.
Posted In: EarningsNewsPenny StocksGuidanceSmall CapGeneralBriefs