Adjusted EPS of $0.28 beat the estimate of $0.27.

Comparable sales for the quarter decreased 3% versus last year, driven by a decrease in transaction count, partially offset by an increase in average dollar sales.

For the second quarter, gross profit was $216.9 million with a gross margin of 39.8%, down 160 bps Y/Y. The lowering margins primarily reflect higher occupancy costs, lower average unit retail, and increased raw material costs. 

Chico's held $151 million in cash and equivalents as of quarter-end. At Q2 end, inventories totaled $300.15 million.

Outlook: Chico's FAS expects Q3 net sales of $505 million-$525 million versus the consensus of $524.6 million. The company sees Q3 EPS of $0.08-$0.12 versus the consensus of $0.11.

Price Action: CHS shares are trading higher by 4.49% at $5.35 on the last check Tuesday.