Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification,
Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.
Earnings Summary
FYE Jan
2008A
2009E
2010E
Revenue (M):
$1,582.4
$1,582.9
$1,678.6
Operating Income (M):
-$15.9
$35.4
$106.3
Net Income (M):
-$3.4
$26.1
$75.0
EPS & P/E Summary
2008A 2008 Previous
2009E 2009 Previous
2010E 2010 Previous
EPS:
Q1
$0.07
--
$0.11
--
--
--
Q2
$0.04
--
$0.07
--
--
--
Q3
$0.01
--
$0.04
--
--
--
Q4
-$0.14
--
-$0.07
--
--
--
Full Year
-$0.02
--
$0.15
$0.10
$0.43
$0.40
P/E Ratio:
NM
--
66.4
--
23.1
--
Fiscal Year Ends Jan
Rating:
Buy
Price:
$9.84
Price Target:
$11.00
52-wk Range:
$1.72-$9.00
Market Capitalization (M):
$1,744.0
Shares Outstanding (M):
176.0
Assets (M):
$1,260.8
Avg. Daily Vol. (000):
4,219.9
Dividend:
$0.00
Dividend Yield:
0.0%
Debt/Total cap:
0%
ROE (TTM):
0.4%
Margaret Whitfield
Jennifer Milan
(973) 519-1019
(212) 763-8211
mwhitfield@sterneagee.com
jmilan@sterneagee.com
May 27, 2009 | 11 Pages
CHICO'S FAS, INC. (NYSE: CHS)
CHS: Q1 HIGHLIGHTS
• Q1 Seen As Starting Point for Recovery. Chico’s reports Q1 at $0.11,
above views based upon higher gross margins and improving SG&A.
Improving trends have been visible at Chico’s earlier than planned,
with fall expected to provide further improvement. Store presentation
and merchandise selection has improved with key items and new
fashion trends tested for fall with good results. TV ads for Chico’s
will resume this fall after three years. At White House, new
executives will focus a new print campaign featuring White House as
a designer alternative. DTC sales should be supported by new
management with web design and marketing experience, with a goal
of reaching 10% of sales in two years (up from 6% in Q1). Direct
grew 37%