Fashion retailer Chico’s Fas Inc. (CHS) on Tuesday reported net income for the second quarter of $26.19 million or $0.21 per share, compared to a net loss of $46.85 million or $0.40 per share in the year-ago quarter.
The prior-year quarter’s results included $0.07 per share, in significant after-tax non-cash inventory write-offs.
Total net sales for the quarter grew 54.2 percent to $472.06 million from $306.17 million in the same quarter last year, primarily reflecting the impact of temporary store closures during last year’s second quarter, partially offset by 29 net permanent store closures since last year’s second quarter.
On average, analysts polled by Thomson Reuters expected the company to report loss of $0.07 per share on revenues of $407.35 million for the quarter. Analysts’ estimates typically exclude special items.
Total Company comparable sales for the quarter compared to the second quarter of fiscal 2019 were down 1.6%.
“Our return to profitability in the quarter was driven by our strategic actions that grew sales, expanded gross margin, and diligently controlled our expenses,” noted Molly Langenstein, President and CEO.
Looking ahead to the third quarter, the company expects consolidated year-over-year net sales improvement of 18 to 22 percent.
For fiscal 2021, the company now expects consolidated net sales improvement of 32 to 35 percent, up from the prior forecast for a 28 to 34 percent growth.
The Company said it expects improving year-over-year demand during the balance of fiscal 2021, but recognize that there is economic uncertainty as we continue to manage through the COVID-19 pandemic.
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