Here's How Chico's FAS (CHS) is Poised Before Q3 Earnings
Chico's FAS' (CHS) third-quarter fiscal 2021 performance is most likely to have gained from the solid execution of its turnaround strategy and brand strength.
We expect Chico's FAS, Inc. CHS to register growth in its top and bottom-line performances from the respective year-ago reported figures when it releases third-quarter fiscal 2021 earnings on Nov 30, before market open. The Zacks Consensus Estimate for the fiscal third quarter currently stands at a loss of 3 cents, which shows an improvement from a loss of 42 cents reported in the year-ago quarter. The consensus mark has been stable in the past 30 days.
A glance at its performance in the trailing four quarters shows that it delivered an earnings surprise of 70.5%, on average.
The consensus estimate for quarterly revenues is currently pegged at $426.1 million, indicating an increase of about 21% from the year-ago period’s reported figure.
Key Factors to Note
Chico's FAS’ quarterly performance is likely to have benefited from steady progress in its turnaround strategy. CHS is focused on efficiently managing expenses and boosting its margins. Also, it constantly experiences strength in its brands, thanks to continuous enhancements in product and marketing. CHS’ Chico's and White House Black Market brands continue to gain from its efforts to elevate styling and quality.
On its last earnings call, management had projected third-quarter consolidated net sales growth of 18-22% from the prior-year reported number. It anticipated a gross margin rate increase of 13-15 percentage points and SG&A, as a rate of net sales, improvement of 500-600 basis points from the respective year-ago levels.
On the flip side, supply-chain disruptions, including elevated freight costs, extended transit times and product supplier handover delays, stemming from the pandemic cannot be ruled out. In addition, headwinds comprising cost pressures from logistics, sourcing, fulfillment and the labor market remain deterrents.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Chico's FAS this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chico's FAS, Inc. Price and EPS Surprise
Chico's FAS currently has a Zacks Rank #3 and an Earnings ESP of +0.09%.
More Stocks With Favorable Combination
Here are some other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this season:
PVH Corp. PVH currently has an Earnings ESP of +12.38% and a Zacks Rank of 1. PVH is expected to register a top and bottom-line increase when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.4 billion, which suggests a rise of 13.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PVH Corp.’s quarterly earnings has moved 1% up in the past 30 days to $2.06 per share, suggesting growth of 56% from the year-ago reported number. PVH delivered an earnings surprise of 177.5%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco COST currently has an Earnings ESP of +1.00% and a Zacks Rank #2. It is likely to register top and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings has moved 2.8% north in the past 30 days to $2.59 per share, suggesting an improvement of 13.1% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for Costco's quarterly revenues is pegged at $49.6 billion, which suggests growth of 14.8% from the figure reported in the prior-year quarter. COST delivered an earnings surprise of 7.7%, on average, in the trailing four quarters.
Kroger KR currently has an Earnings ESP of +3.70% and a Zacks Rank of 3. It is likely to register a top-line rise when it reports third-quarter fiscal 2021 numbers. Although the Zacks Consensus Estimate for quarterly earnings has increased 1.5% in the past seven days to 66 cents per share, the same suggests a decline of about 7% from the year-ago period’s tally.
The Zacks Consensus Estimate for Kroger’s quarterly revenues is pegged at $31 billion, suggesting an improvement of 4.4% from the figure reported in the prior-year quarter. KR delivered an earnings surprise of 18%, on average, in the trailing four quarters.
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The Kroger Co. (KR): Free Stock Analysis Report
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Chico's FAS, Inc. (CHS): Free Stock Analysis Report
PVH Corp. (PVH): Free Stock Analysis Report
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