FLORIDA: Chico’s FAS Inc., reported worse-than-expected revenue and adjusted earnings for its latest quarter Tuesday as both transaction count and average price per transaction fell.
Shares of the company dropped 9.7% in premarket trading to $11 a share.
The company also announced a new share buyback of up to $300 million and raised its quarterly dividend by 3.3% to 7.75 cents per share.
Earlier this year, the company unveiled plans to cut capital spending, accelerate store closures and cut jobs. The move was made after private-equity firm Sycamore Partners dropped its bid to buy Chico’s because it couldn’t line up financing. The company said in October that Wal-Mart Stores Inc. veteran Shelley Broader would become its chief executive at the start of December.
The company posted a loss of $11.6 million, or 9 cents a share, compared with a $26.5 million profit, or 17 cents a share, a year prior
Excluding charges related to the restructuring and the previously announced selling of its direct-to-consumer Boston Proper business, earnings fell to 13 cents a share from 19 cents the year before. Revenue fell 3.7% to $641 million.
Analysts surveyed by Thomson Reuters expected adjusted profit of 20 cents a share on revenue of $667 million.
Sales at existing locations fell 3.3%.
In addition to its namesake stores, Chico’s has other brands, including White House Black Market and lingerie label Soma. Chico’s namesake brand posted a 4.7% fall in sales to $220 million while revenue in the White House, Black Market segment edged down 2% to $72 million. Sales in the Soma Intimates brand fell 0.9% to $17 million.
Women’s clothing has been among the most troubled retail segments in recent years. In the last few years, a number of women’s clothing chains have either scaled back or closed.
