Chicos FAS, Inc. (CHS) swung to a net profit for the quarter ended Jan. 28, 2017. The company has made a net profit of $13.51 million, or $ 0.10 a share in the quarter, against a net loss of $21.09 million, or $0.16 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $13.51 million, or $0.10 a share compared with $6.19 million or $0.05 a share, a year ago. Revenue during the quarter dropped 4.88 percent to $600.79 million from $631.61 million in the previous year period. Gross margin for the quarter expanded 110 basis points over the previous year period to 35.52 percent. Operating margin for the quarter period stood at positive 3.56 percent as compared to a negative 2.29 percent for the previous year period.
Operating income for the quarter was $21.41 million, compared with an operating loss of $14.44 million in the previous year period.
"We are extremely pleased with our results this quarter," said Shelley Broader, chief executive officer and president. "We drove significant earnings growth, highlighted by gross margin expansion, SG&A leverage, and a substantial increase in operating margin. I am proud of our team and their continuing execution of our strategic initiatives."
Operating cash flow improves
Chicos FAS, Inc. has generated cash of $230.71 million from operating activities during the year, up 17.12 percent or $33.72 million, when compared with the last year. The company has spent $31.83 million cash to meet investing activities during the year as against cash inflow of $0.49 million in the last year. It has incurred net capital expenditure of $31.62 million on net basis during the year, down 58.31 percent or $44.22 million from year ago.
The company has spent $146.67 million cash to carry out financing activities during the year as against cash outgo of $240.38 million in the last year period.
Cash and cash equivalents stood at $142.14 million as on Jan. 28, 2017, up 58.01 percent or $52.18 million from $89.95 million on Jan. 30, 2016.
Working capital increases marginally
Chicos FAS, Inc. has recorded an increase in the working capital over the last year. It stood at $174.77 million as at Jan. 28, 2017, up 4.53 percent or $7.58 million from $167.19 million on Jan. 30, 2016. Current ratio was at 1.58 as on Jan. 28, 2017, up from 1.56 on Jan. 30, 2016.
Debt comes down
Chicos FAS, Inc. has recorded a decline in total debt over the last one year. It stood at $84.78 million as on Jan. 28, 2017, down 8.06 percent or $7.43 million from $92.22 million on Jan. 30, 2016. Total debt was 7.65 percent of total assets as on Jan. 28, 2017, compared with 7.91 percent on Jan. 30, 2016. Debt to equity ratio was almost stable at 0.14 as on Jan. 28, 2017, when compared with the last year.
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