Struggling womenswear retailer Chico's FAS (NYSE:CHS) topped expectations with second quarter results, and continued with its cost-cutting plans.
The three months to 1 August saw the top line rise 1.4% to US$680.4mln from a year earlier, and although that was boosted by a net increase of 23 stores in the company's retail estate, it was ahead of analysts' forecasts of US$674mln.
Underlying earnings, adjusted for one-off items, rose to 25 cents a share from 20 cents a year ago, and beat analysts' forecasts of 22 cents a share.
Post-tax profit slumped to US$2.1mln from US$30.1mln, but investors were encouraged by a 0.5% year-on-year increase in like-for-like sales, which exclude stores opened or closed in the preceding 12 months.
The company said it would sell its Boston Proper direct-to-consumer business and close the 20 stores operating under the Boston Proper fascia.
Including the latest update, Chico's has only beaten analysts' estimates of revenue and earnings twice in the last nine quarterly updates.
Shares were up 4.1% at US$14.39 in lunchtime trading.