Chico's FAS Rides Omni-Channel Theme And Adds New Drivers

Specialty Retailer Chico's FAS (CHS) reported a solid 4th quarter and encouraging outlook for 2013 (ending January, 2014) on 2/28. Despite a 2% top-line shortfall as sales grew 14.5% (3.7% same-store-sales, 8% s.f. growth and an extra week), the company met its EPS consensus with strong margin performance as it minimized promotions and guided for double-digit sales growth and mid-teens earnings growth for 2013. Investors seemed relieved that it wasn't a disaster, with the stock rallying slightly but still closing down 8% from year-end levels. With multiple drivers ahead, a strong balance sheet, a shareholder-friendly capital allocation policy and a strengthened management team (which is important in case the 63-year old CEO Dave Dyer retires), this underappreciated growth...