Chico’s FAS Inc. (CHS) reported Wednesday that its second-quarter net loss widened to $46.85 million or $0.40 per share from $2.31 million or $0.02 per share in the year-ago quarter.
The year-ago period’s results included after-tax accelerated depreciation charges of $2.2 million, or $0.02 per share.
On average, analysts polled by Thomson Reuters expected the company to report loss of $0.25 per share for the quarter. Analysts’ estimates typically exclude special items.
Quarterly net sales dropped 39.8 percent to $306.17 million from $508.36 million last year. Analysts had a consensus revenue estimate of $346.17 million.
The lower sales for the quarter reflected disruptions related to the pandemic, including the continuation of temporary store closures and limited hours during the latest quarter, as well as the impact of 74 net permanent store closures since the year-ago quarter, partially offset by double-digit growth in digital performance. However, sales improved 9.2 percent from the preceding first quarter.
The company did not provide comparable sales figures for the latest quarter, noting that it is not a meaningful measure due to the significant impact of store closures as a result of the pandemic.
Looking ahead, Chico’s FAS said that due the ongoing market disruption caused by the pandemic and related uncertainty on timing and extent of the market recovery, it is not providing third-quarter or full-year guidance at this time.
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