CHS - Chico's climbs after earnings topper gross margin expansion

Chico's FAS (CHS +2.9%) shares rise after the company reports results ahead of consensus on both the top and bottom lines along with guiding revenue ahead of consensus for Q4. GAAP EPS of $0.15 marked the company's best Q3 since 2016 as total company sales grew 29% Y/Y. Gross margin rate expanded to 40.7%, the highest in Q3 since 2014, due to fewer promotions and higher sale prices. SG&A as a percent of sales was at the lowest level since 2018 at 35.7%. "Our third quarter comparable sales growth of 28% was driven by outperformance in store and digital sales channels. The sales growth was propelled by meaningful enhancements in product and marketing, which continued to significantly drive full-price selling," commented CEO Molly Langenstein. By brand, Chico's grew 23.3% Y/Y, White House Black Market increased 33.4%, and Soma is up 30.2%. Total customer count rose 8% and their average age continues

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Chico's climbs after earnings topper, gross margin expansion