Chico’s FAS (CHS) 4Q15 RESULTS: COMPS AND REVENUES DOWN; COMPS FLAT TO DOWN AND HIGHER EPS IN 2016

Executive Summary

• Chico’s reported 4Q15 adjusted EPS of $0.05 versus estimated EPS of $0.00. Net revenue for the quarter was $627.4 million, down 4.5% year over year from $657.9 million in 4Q14.
• The fall in revenue was due to a decline of 3.2% in comparable sales and a decrease in sales of the Boston Proper line.
• Chico’s guided for fiscal 2016 comps “flat to slightly down,” a flat gross margin, an operating margin approximately 100 basis points higher, and a $0.09 increase in EPS to $0.84.