Published on 22 Nov 2023 on Zacks via Yahoo Finance
Chico's FAS (CHS) Set to Report Q3 Earnings: What to Expect
We expect Chico's FAS, Inc. CHS to register a year-over-year decline in its top and bottom-line performances when it releases third-quarter fiscal 2023 results on Nov 28, before market open. The Zacks Consensus Estimate for earnings for the fiscal third quarter is currently 10 cents per share, which shows a decrease of 50% from the year-ago quarter. The consensus mark has been stable in the past 30 days.The company has delivered an earnings surprise of 24%, on average. The consensus estimate for quarterly revenues is currently pegged at $512.7 million, indicating a drop of 1.1% from the year-ago period’s reported figure.
Key Factors to Note
Chico's FAS’s quarterly performance is likely to be hurt by a tough macroeconomic environment, including headwinds like inflationary pressures and foreign currency fluctuations. These factors, coupled with any deleverage in selling, general and administrative expenses, are expected to have affected CHS’s performance in the fiscal third quarter.On its last earnings call, management had projected consolidated net sales to be $505-$525 million. Further, it guided the gross margin to be 38.5-39% and SG&A, as a rate of net sales, to be 35.1-35.6% for the quarter under review. Management had envisioned earnings per share of 8-12 cents, down from 20 cents a share earned in the year-earlier quarter.The Zacks Consensus Estimate for sales across Chico’s, Soma and White House Black Market brands is currently pegged at $252 million, $105 million and $155 million, respectively. These figures reflect corresponding decreases of 1.2%, 0.9% and 1.3% year over year. The consensus mark for comparable sales shows that the metric will decline 3% in the fiscal third quarter.On the flip side, the company remains focused on efficiently managing expenses and boosting growth. Also, it has been experiencing immense strength in its brands, thanks to continuous enhancements in product and marketing. These factors are likely to have provided some cushion to the company’s performance during the quarter under discussion.