Why Chico's FAS Jumped Tuesday

What happened

Shares of women's apparel retailer Chico's FAS (NYSE: CHS) jumped on Tuesday, rising as much as 18.5%. As of 2:05 p.m. EDT, the stock was up 11.3%.

Continue Reading Below

The price spike followed the release of the company's fiscal first-quarter report, which included better-than-expected non-GAAP earnings per share.

So what

Chico's fiscal Q1 sales were $516.7 million, down from $561.8 million in the year-ago quarter. That was about in line with what analysts were expecting. Non-GAAP earnings per share of $0.05, however, were ahead of the consensus forecast for $0.03 per share.

"Chico's first quarter results stabilized in line with the fourth quarter 2018," management said in the fiscal Q1 earnings release. "The brand is making progress in elevating the product aesthetic and delivering a more balanced merchandise architecture to its customers."

Now what

Management's guidance for the full fiscal year is that both net sales and comparable sales will decline by low-to-mid-single-digit percentages. But management also said it expects "stronger sales trends across all brands in the second half of the year, as key initiatives gain traction."

10 stocks we like better than Chico's FASWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Chico's FAS wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.