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      Chico’s FAS Inc. (CHS) Stock Dips Despite Disclosure of Stellar Financial Reports for Q2 2021 - Stocks Telegraph

      By Shimrez Hyder

      Published on

      August 31, 2021

      5:22 PM UTC

      Chico’s FAS Inc. (CHS) Stock Dips Despite Disclosure of Stellar Financial Reports for Q2 2021 - Stocks Telegraph

      Chico’s FAS Inc. (CHS) stock prices were down by 14.70% shortly after market trading commenced on August 31st, 2021. This brought the price per share down to USD$4.99 early on in the trading day.

      CHS Stock’s Record Second Quarter

      The company’s second-quarter 2021 earnings performance was the best second-quarter reported since 2013. This evidences CHS stock’s remarkable progress as it continues executing its turnaround strategy, despite pandemic challenges. The company’s return to profitability in Q2 2021 was driven by the execution of its strategic actions that resulted in an increase in sales and gross margin. The company’s profitability was also driven by the diligent control of their expenses.

      CHS Stock’s Sales Breakdown

      Sales across all three of the company’s brands were supported by substantial enhancements in product and marketing. This continued to drive full-price selling, reduce markdowns, and produce a higher gross margin. Soma reported a 53% year-over-year increase in sales, positioning it to become one of the largest intimate apparel brands in the U.S. Sales at Chico’s were up 59% over the past year, while White House Black market was up 48%. CHS stock reported overwhelmingly positive reception of its elevated styling and quality standards, which led to faster sell-through rates and higher inventory productivity.

      Net Income Reports

      The second quarter of fiscal 2021 saw CHS stock report net income in the amount of USD$26.2 million, representing a net income of USD$0.21 per diluted share. This is a massive improvement from the net loss of USD$46.8 million reported for the prior-year quarter, representing a net loss of USD$0.40 per diluted share. The net loss reported in the second quarter of 2020 included USD$8 million in significant after-tax non-cash inventory write-offs.

      Solid Liquidity Position

      CHS stock reported a solid liquidity position as of the end of the second quarter of fiscal 2021. This included cash and marketable securities totaling USD$137.2 million compared to USD$124.5 million at the end of the prior year quarter. The company reported debt in the amount of USD$149 million at the end of Q2 2021.

      Future Outlook for CHS Stock

      The company reported a promising quarter, as evidenced by its record-breaking second-quarter financial reports for 2021. CHS stock is poised to capitalize on the momentum it has generated as it usher in organic growth over the long term. Investors are hopeful that this will result in significant and sustained increases in shareholder value.

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