Chico's posts solid profit

The stock value of Chico's FAS Inc. (NYSE: CHS) fell significantly the day it announced that quarterly profits had doubled compared to last year's first quarter.

The Fort Myers-based clothing retailer posted a $35.4 million net income for the first quarter of 2010, more than twice its 2009 total of $14.5 million. This quarter's performance gave the company a $0.20 earnings per share.

But Chico's stock may have fallen victim to investor expectations this time around. Multiple reports suggest analysts were expecting an earnings per share amount of $0.20; meeting, rather than exceeding those expectations may have contributed to the stock's sharp decline in value, as shares traded at $11.90 late Wednesday afternoon, down more than 15% from Tuesday's close.

The company continues to maintain significant liquidity. Its latest financial statement showed $481.9 million in cash and marketable securities, up almost $60 million from the end of the 2009 fiscal year.

A subject of a recent Business Review story, Chico's named Laurie Van Brunt as president of its Soma Intimates line earlier this month.