Chico's quarterly profit beats Street; shares jump

Chico's

NEW YORK, Nov 18 (Reuters) - Women's clothing and accessories retailer Chico's FAS Inc (CHS.N) posted a much larger-than-expected quarterly profit amid higher margins, better sales, and controlled promotions.

The Fort Myers, Florida-based chain said on Wednesday 18 November that net profit was $22.7 million, or 13 cents per share, in the third quarter ended on Oct. 31, up from $2 million, or 1 cent per share, a year earlier.

Revenue rose 13.3 percent to $446.9 million, said the operator of the Chico's, White House Black Market and SOMA Intimates chains.

Analysts on average had been expecting earnings of 7 cents per share on revenue of $414.7 million, according to Thomson Reuters I/B/E/S.

Chico's also said sales at stores open for at least a year had risen 12.8 percent during the quarter.

The company recently managed to reverse a longtime sales decline, fueling hopes that the retailer, which sells clothing to women over the age of 40, has turned a corner following ongoing merchandise improvements.

Shares of Chico's rose 10.5 percent to $14.90 in premarket trading.

Chico's FAS operates a total of 1,074 specialty stores. (Reporting by Phil Wahba in New York and Alexandria Sage in San Francisco)