Chico's Shares Drop After Earnings Miss Estimates

Chico's FAS Inc. [s:chs] shares sank 4.9% in Thursday premarket trading after the fashion retailer announced first-quarter earnings that missed estimates. Chico's, whose brands include the namesake clothing line, White House Black Market, and the Soma lingerie line, said it had net income of $31.3 million, or 23 cents per share, compared with $32.5 million, or 22 cents per share for the same period last year. Adjusted earnings were 25 cents per share, below the 31 cents per share FactSet consensus. Revenue totaled $643 million, down from $697.8 million last year and below the $669 million FactSet consensus. Same-store sales decreased 4.2% for the quarter. The company said it is taking cost-cutting actions that will improve its supply chain and other areas of the business, generating between $50 million and $70 million in annual savings. This is in addition to previously announced cuts to marketing and digital commerce actions expected to generate $14 million in annual savings. Chico's shares are down 35.1% for the past year while the S&P 500 is fell 0.7% for the same period.