Chico's FAS Q4 Results Miss Estimates, But Hikes Dividend - Quick Facts

(RTTNews) - Specialty retailer Chico's FAS Inc. (CHS) reported a fourth quarter 2013 net loss of $0.3 million, and break even per share compared to net income of $31.5 million and $0.19 per share in the fourth quarter 2012.

The fourth quarter 2013 results included a $6.2 million income tax charge, or $0.04 per diluted share, related to the Boston Proper non-cash goodwill impairment recorded in the third quarter of 2013.

The fourth quarter 2012 results included non-recurring acquisition and integration costs of $1.2 million after tax, or $0.01 per share.

Adjusted net income was $5.9 million compared to adjusted net income of $32.7 million last year. Quarterly adjusted earnings per share fell to $0.04 from $0.20 in last year's fourth quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were $610.2 million, a decrease of 6.4% compared to $651.9 million in last year's fourth quarter, primarily reflecting 115 net new stores for a square footage increase of 8.4%, offset by a decrease in comparable sales and approximately $38 million attributable to the fifty-third week of fiscal 2012. Twenty two analysts estimated revenues of $653.40 million for the quarter.

Comparable sales for the fourth quarter decreased 3.4% following a 3.7% increase in last year's fourth quarter, reflecting lower average dollar sale and transaction count, primarily as a result of the impact of a highly promotional environment in response to lower traffic. The fifty-third week in fiscal 2012 is excluded from comparable sales calculations.

Chico's FAS also announced that its Board of Directors declared a quarterly cash dividend of $0.075 per share of its common stock, a 36% increase over the dividend rate from April 2013. The dividend is payable on March 31, 2014 to Chico's FAS shareholders of record at the close of business on March 17, 2014.