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FORT MYERS -- Chico's FAS Inc. (symbol: CHS) earned $26.5 million in net income on $538.5 million of third quarter revenues, good for earnings per share of 16 cents.
The firm's revenues grew 11.5% over the year, but net income is down 8.2%, in part because of a one-time expense -- $5 million spent by Chico's to acquire Boston Proper.
But even after accounting for the Boston Proper purchase, Chico's per share earnings -- roughly 18 cents a share excluding the BP deal -- fell below investor expectations for the quarter. Wall Street analysts had been expecting 20 cents in earnings per share excluding one-time costs, and $548.9 million in revenues.
Missing those expectations in an already vulnerable market pushed Chico's share price down roughly 14% in early Tuesday trading, below $10 a share.
In conjunction with its earnings announcement, Chico's made two more investor announcements on Tuesday: that it would commit $200 million to a share repurchase program, and that it would issue a 5-cent dividend to shareholders for the quarter.
Chico's FAS Inc. is a women's apparel retailer based in Fort Myers. The company now operates 598 boutiques and 77 outlet shops.
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