Research Desk Line-up: Genesco Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 16, 2017 / Pro-Trader Daily publishes post-earnings coverage on Chico’s FAS, Inc. (NYSE: CHS) following the Company’s announcement of its first quarter fiscal 2017 financial results on May 24, 2017. The clothing chain Company’s revenue and earnings numbers missed market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Genesco Inc. (NYSE: GCO) for due-diligence and potential coverage as the Company reported on May 25, 2017, its earnings results from continuing operations for Q1 FY18 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Genesco when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CHS; also brushing on GCO. With the links below you can directly download the report of your stock of interest-free of charge at:

Earnings Reviewed

For the fiscal 2017 first quarter ended April 29, 2017, Chico’s net sales totaled $583.7 million, down 9% compared to net sales of $643.0 million in Q1 2016. The decline in net sales primarily represents a decline in comparable sales of 8.7%, driven by lower average dollar sale and a decline in transaction count. The Company’s sales numbers fell short of analysts’ estimates of $625.4 million.

For Q1 2017, Chico’s gross margin was $237.4 million, or 40.7% of net sales, compared to $262.3 million, or 40.8% of net sales, in Q1 2016. The decline in gross margin was attributed to sales deleverage of store occupancy expenses, substantially offset by an improvement in merchandise margin. The Company’s selling, general, and administrative expenses (“SG&A”) were $182.5 million, or 31.3% of net sales, in the reported quarter compared to $208.1 million, or 32.4% of net sales, in the prior year’s same quarter, reflecting savings in store related expenses, lower marketing spending, and the benefit of other previously announced cost reduction initiatives.

For the thirteen weeks ended April 29, 2017, Chico’s reported net income of $33.6 million, or $0.26 per diluted share, compared to net income of $31.1 million, or $0.23 per diluted share, for the thirteen weeks ended April 30, 2016. The Company’s earnings numbers came in below Wall Street’s expectations of $0.29 per share.

Cash Matters

As of April 29, 2017, Chico’s had cash and cash equivalents worth $119.14 million compared to $56.50 million as on April 30, 2016. At the end of the quarter, the Company had long-term debt of $64.80 million compared to $79.74 million at the end of the year-ago same period.

At the end of Q1 2017, Chico’s inventories totaled $273.9 million versus $268.0 million in the prior year’s comparable quarter. The $5.9 million increase in inventories primarily reflected a $10.5 million increase in in-transit inventories, largely due to a shift in shipping terms with the Company’s major vendor, partially offset by a 2.0% decrease in on-hand inventories compared to the same period last year.

Share Repurchase Program

During Q1 2017, Chico’s repurchased 0.7 million shares for $9.5 million, at a weighted average of $13.65 per share under its $300.0 million share repurchase program announced in November 2015. The Company had 154.1 million remaining for future repurchases under the program.

Store Update

Chico’s stated that as part of its ongoing strategy to improve the productivity of its fleet, the Company opened 2 new stores and closed 11 during Q1 2017. Chico’s announced that it will be reinvesting in 55 locations through relocations, refreshes, and remodels in FY17.


For fiscal 2017, Chico’s is forecasting a mid-single-digit percentage decline in comparable sales. The Company expects gross margin as a percent of net sales to be flat to up to a 30 basis point increase for the year. Chico’s on-hand inventory in each quarter is expected to be down compared to last year as the Company continues to actively manage inventory. Capital expenditures are expected to be $60 million to $70 million for FY17.

Stock Performance

At the close of trading session on Wednesday, June 14, 2017, Chico’s FAS’ stock price declined 2.23% to end the day at $9.22. A total volume of 2.42 million shares were exchanged during the session. The Company’s shares are trading at a PE ratio of 12.77 and have a dividend yield of 3.58%. At Wednesday’s closing price, the stock’s net capitalization stands at $1.21 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit


For any questions, inquiries, or comments, reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list, contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: [email protected]
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

Related Posts Plugin for WordPress, Blogger...