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Chico’s FAS Earnings: CHS Stock Takes 25% Hit Due to Coronavirus Shutdown

Chico’s FAS (NYSE:CHS) earnings for the retailer of women’s clothing and accessories’ fiscal first quarter of 2020 have CHS stock heading lower on Wednesday. That’s due to its adjusted losses per share of 38 cents missing Wall Street’s estimate for a loss of 25 cents. Its revenue of $280.26 million also couldn’t reach analysts’ estimates of $324.6 million.

Chico's FAS Earnings: CHS Stock Takes 25% Hit Due to Coronavirus Shutdown

Source: JHVEPhoto / Shutterstock.com

Let’s take a closer look at the most recent Chico’s FAS earnings report below.

  • Adjusted per-share losses are down quite a bit from its adjusted EPS of 5 cents during the same time last year.
  • Revenue for the quarter is 45.9% worse than the $517.73 million reported in the fiscal first quarter of 2019.
  • Operating loss of $254.45 million is a massive switch year-over-year from an operating income of $5.42 million.
  • The Chico’s FAS earnings report also has net loss coming in at $178.29 million.
  • That’s a decline compared to the company’s net income of $2.03 million from the same period of the year prior.

Molly Langenstein, president and CEO of Chico’s FAS, said this about the company’s earnings.

“As we look to the second quarter and the balance of 2020, we believe we will be competitively stronger because of the measures we’ve taken to liquidate our prior season inventory and remove it from our stores and distribution centers. We are encouraged by our strong store re-openings and the accelerated demand in our digital channels, which demonstrate our customers’ loyalty to our brands.”

Chico’s FAS isn’t providing an outlook for fiscal 2020 in its current earnings report. It’s still holding off due to the uncertainties surrounding the novel coronavirus. Many other companies are doing the same.

CHS stock was down 24.6% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/06/chicos-fas-earnings-drop-chs-stock-hard/.

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