Chico’s swings to Q3 profit

Things are looking up at Chico’s FAS.



The women’s apparel retailer on Tuesday reported net income of $23.6 million for the third quarter, after reporting a net loss of $11.6 million in the same period a year earlier.



Chico’s had a profit of 18 cents per share. Earnings, adjusted for one-time gains and costs, came to 20 cents per share. The results topped Wall Street expectations.



Revenue for the quarter fell 7.5% to $596.91 million, down from $645.43 million last year, missing Street forecasts. The decrease included $18.7 million related to Boston Proper. When excluding Boston Proper from fiscal 2015, net sales decreased 4.8%.



Same-store sales fell 4.9%, on reduced transaction count and lower average dollar sale. Third quarter average unit retail increased with a decline in promotional activity.



“Our third quarter earnings exceeded expectations,” said Shelley Broader, CEO and president. “As a result of our efforts to transform Chico's FAS for the future, we were able to achieve significant earnings growth and are demonstrating considerable progress toward our goal of double digit operating margin. We are fully engaged in the implementation of our cost reduction and operating efficiency initiatives, and our continued progress reinforces our confidence in the company's strategic plan.”



Chico’s also announced that its board declared a quarterly cash dividend of 8 cents per share of its common stock, a 3.2% increase over the dividend rate from December 2015. The dividend is payable Dec. 19, 2016, to Chico’s FAS shareholders of record at close of business on Dec. 5, 2016.



As of October 29, 2016, the retailer operated 1,510 stores in the U.S. and Canada under three banners: Chico’s, White House | Black Market and Soma.