Executive Summary

• Chico’s FAS reported 4Q16 adjusted EPS of $0.10, up from $0.05 in the year-ago quarter and beating the consensus estimate of $0.04. The company reported adjusted revenue of $600.8 million, down 2.3% from $614.9 million in the year-ago quarter but above the $594.8 million consensus estimate.
• Same-store sales declined by 2.5% during the quarter, slightly above the (2.8)% consensus estimate and in line with previous guidance. Total comps were driven by declines in both number of transactions and average dollar sale.
• For FY17, the company expects a low-single-digit same-store sales decline versus the (0.2)% consensus estimate. Chico’s anticipates it will make steady progress toward its target of a double-digit operating margin in 2019.