Shares of Chico's FAS (CHS) were higher after the specialty retailer of casual-to-dressy clothes posted slightly higher September same-store sales, and 30% higher total sales. Tucker Anthony reiterated a strong buy on the stock.
Analyst Margaret Whitfield said sales began to rise in week 4 with strong response to an added 5% discount received by Passport members through October 8. And while comparable store sales for company-owned stores rebounded to positive 1.1% for September, the initial plan had called for 10%. Whitfield added the retailer's gross margin likely is intact, but notes action was taken early to cut expenses and that the move's full impact may not be visible until the fourth quarter.
The analyst sees $0.29 EPS for the third quarter with potential upside. Her price target for the stock is $45.