Chico’s FAS, Inc. (NYSE:CHS) shot up nearly 8% Wednesday after reporting stronger-than-expected second quarter earnings, driven primarily by improved sales in its Chico’s/Soma Intimates and White House Black Market businesses and a recently authorized $200 million stock repurchase program.
The women’s apparel retail chain posted net income of $30.5 million, or 17 cents a share, compared with $14.9 million, or 8 cents a share, in the same quarter last year, and landing ahead of average analyst estimates of 16 cents, according to a Thomson Reuters poll.
The company’s board of directors recently authorized the repurchase of up to $200 million of outstanding common stock, through January 2013.
Revenue for the Fort Myers, Florida-based company was $465.4 million, up 10.8% from $419.9 million a year ago, but missing the Street’s view of $468.14 million.
Earnings were boosted by higher sales in its Chico’s/Soma Intimates and White House Black Market businesses.
Inventories in Chico’s 1,128 specialty stores were up 12.8% to $16.7 million.
The retailer showed a first-half improvement, with income up to $65.9 million from $29.4 million the earlier-year half.