Investors had a wary take on Chico’s FAS Inc.’s third-quarter results, which showed earnings and sales below what Wall Street projected.
Net losses tallied $11.6 million, or 9 cents a share, and compared with earnings of $26.5 million, or 17 cents, a year earlier. Adjusting to factor out charges associated with the disposition of the Boston Proper direct-to-consumer business and corporate restructuring, earnings per share fell to 13 cents, from 19 cents, and were 7 cents shy of the 20 cents analysts projected.
Sales for the three months ended Oct. 31 fell 3.7 percent to $641.2 million from $665.6 million where analysts expected a slight top line uptick.
On a comparable-store sales basis, the Chico’s division fell 4.7 percent in the quarter, while White House|Black Market dipped 2 percent and Soma slipped 0.9 percent.
Shares of the company were down 2.9 percent to $11.82 after about 15 minutes of trading on Wall Street.
It’s been a season of change for Chico’s, which has a market capitalization of about $1.7 billion. Twice this year, the company was rumored to be a takeover target of Sycamore Partners, but both times financing for the deal was said to be the sticking point.
Last month, Shelley Broader was named president and chief executive officer, although her appointment isn’t effective until Dec. 1. She’s taking the reins from David Dyer.