Chico's quarterly profit more than doubles

Chico's

NEW YORK (Reuters) - Women's apparel retailer Chico's FAS Inc (CHS.N) posted a quarterly profit that was in line with Wall Street estimates, helped by lower markdowns and better fashions.

Chico's said on Wednesday 19 May that its net income more than doubled to $35.4 million, or 20 cents per share, in the first quarter ended on May 1 from $14.5 million, or 8 cents per share, a year earlier.

Net sales jumped 17 percent to $481.6 million.

Analysts on average were expecting earnings of 20 cents per share on revenue of $473.6 million, according to Thomson Reuters I/B/E/S.

Still, Chico's shares fell 40 cents, or 2.8 percent, to $13.76 in premarket trading.

The company, operator of the Chico's and White House/Black Market chains, has managed to add more fashionable items for its mature women shoppers and turn around its frumpy image.

Chico's said its gross margin increased 1.7 percentage points to 58.5 percent as its outlet stores benefited from selling a higher proportion of made-for-outlet apparel, versus unsold merchandise from its full-priced stores.

It also said that sales at stores open at least a year, or same-store sales, rose 14.9 percent in the quarter, driven by a 14.8 percent increase for the Chico's/Soma Intimates brands and a 15.3 percent gain for White House/Black Market.

(Reporting by Martinne Geller; Editing by Lisa Von Ahn, Dave Zimmerman)