FMP
Chico's FAS, Inc. Closed 11% Lower Today Despite Beating Q2
Aug 31, 2021 11:44 PM - Davit Kirakosyan
Image credit: FMP
Chico's FAS, Inc. (NYSE:CHS) share closed more than 11% lower today, losing around 17% intra-day, despite the company reported strong Q2 results.
The company posted quarterly EPS of $0.21 beating the consensus estimate of ($0.08). With this quarter’s 362.50% earnings surprise, the company marks the second quarter over the last four, beating the Street estimates. Q2 revenue of $472.06 million (vs. $306.17 million a year ago) also came above the consensus estimate, exceeding it by 15.89%.
Management didn’t provide any specific full 2021-year guidance, given the uncertainty driven by COVID-19 and continuous market volatility, however, it mentioned it expects consolidated year-over-year net sales improvement to range from 28% to 34%, from 18 to 20 percentage points improvement in gross margin year-over-year, and income tax expense of around $0.5 million.
Despite strong results, the company’s shares dropped more than 17% Tuesday morning. But the company is not the only one seeing share prices plummet after a strong earnings report. Designer Brands (NYSE: DBI) also posted above-consensus earnings, but losing 10% during morning trading.
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