Chico’s FAS Inc. CHS, -1.85% shares jumped 4.5% in Tuesday premarket trading after the women’s apparel company reported a surprise second-quarter profit and sales that beat expectations. Net income totaled $26.2 million, or 21 cents per share, after a loss of $46.8 million, or 40 cents per share, last year. The company also reported a loss of 2 cents per share for the same period in 2019. Sales totaled $472.1 million, up from $306.2 million last year. The FactSet consensus was for a loss of 7 cents per share and sales of $407.4 million. Comparable sales versus 2019 fell 1.6% with the Soma intimates brand up 38.1%, the eponymous brand down 14.3% and White House Black Market down 5.3%. “Our second quarter earnings performance was the best second quarter Chico’s FAS has posted since 2013,” said Molly Langenstein, Chico’s chief executive in a statement. Chico’s is guiding for a third-quarter sales increase between 18% and 22%. The FactSet consensus is for sales of $448.5 million, implying growth of 27.6%. For the year, Chico’s outlook is for sales growth of 32% to 35%. The FactSet consensus is for sales of $1.748 billion, suggesting 32% growth. Chico’s stock has more than tripled, up 267.3%, for the year to date, while the S&P 500 index SPX, +0.43% has gained 20.6% for the period.
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