Chico’s 2Q profit more than doubles on sales

FORT MYERS, Fla. — Women’s specialty retailer Chico’s FAS Inc. said Tuesday that its profit more than doubled in the second quarter, helped by stronger sales and a leaner inventory.

The retailer earned $14.9 million, or 8 cents per share, for the period ended Aug. 1. That’s up from $6.7 million, or 4 cents per share, a year earlier.

Excluding charges totaling $3.1 million, it earned 10 cents per share, which met the expectations of analysts polled by Thomson Reuters. Analysts’ estimates normally exclude one-time items. The charges related to the impaired portion of a note receivable and underperforming stores.

Sales grew 4 percent to $419.9 million from $405.2 million on increased sales at White House Black Market and Chico’s/Soma stores as well as a sharp rise in direct-to-consumer sales. The results surpassed Wall Street’s estimate of $416.7 million.

Same-store sales edged up 1.3 percent during the quarter, with Chico’s/Soma same-store sales gaining about 0.4 percent and White House Black Market same-store sales rising 3.7 percent.

Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Inventory fell by $12.6 million, to $130.2 million, from a year ago.

Chico’s FAS runs 1,068 specialty stores, including stores in 48 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico.