Chicos Fas (CHS),  a leading omni-channel specialty retailer of clothing, accessories, and other non-clothing items for women, has announced a 30.88 percent plunge in profit for the quarter ended Aug. 02, 2014.

The company earned $30.13 million or $0.20 a share in the second-quarter compared with $43.59 million or $0.27 a share a year ago. Analysts on average had predicted net income of $0.26 a share.

Revenue during the second-quarter climbed 3.33 percent to $671.13 million from $649.50 million in the last year period.

Gross margin contracted by 246 basis points over the last year period to 52.37 percent. Total expenses as a percentage of revenues increased to 93.04 percent from 89.24 percent in the same period last year. That has resulted in contraction of 380 basis points in operating margins to 6.96 percent.

The company reported operating income of $46.74 million, compared with $69.88 million in the previous year period.

Cash Flow

Chicos Fas has generated cash of $153.14 million from operating activities during the first half, up 7.06 percent or $10.10 million when compared with the last year period. The company has generated 11.32 cents of operating cash flow in every sales dollar for the first half, up from 10.83 cents in the same period last year.

The company has spent $41.26 million cash to meet investing activities during the first half, as against cash outgo of $7.83 million in the last year period. It has made net capital expenditure of $62.97 million during the first half, which was lower by 12.24 percent or $8.78 million, from a year ago.

The company's free cash flow accounted for 58.88 percent of operating cash flow for the first half, compared with 49.84 percent in the last year period.

The company has spent $33.94 million cash to meet financing activities during the first half, as against cash outgo of $98.65 million in the last year period. It has spent net of $12.23 million on repurchase of common stocks.

The company's cash dividend payment increased 28.82 percent or $5.12 million to $22.90 million.

As on Aug. 02, 2014, the company's cash balance stood at $114.39 million, up 22.45 percent or $20.97 million from Aug. 03, 2013.

Working Capital

Chicos Fas has witnessed a decline in the working capital over the last one year. The company's working capital stood at $200.84 million as at Aug. 02, 2014, down $89.72 million or 30.88 percent from $290.57 million on Aug. 03, 2013. It registered a decrease in current ratio to 1.68 as at Aug. 02, 2014 from 2.04 on Aug. 03, 2013.