Seeking Alpha
Editor's notes: CHS's rare same-store sales miss should be viewed as an opportunity. Ariana Research, whose ASNA call looks good, says the retailer's niche leadership and balance sheet should drive 35% upside.

Executive Summary

Chico's FAS Inc. (CHS) ("Chico's", "CHS" or the "Company") is a diversified retailer that holds a basket of brands focused on women 35 years and older. The Company has a market cap of $2.65B and an enterprise value of $2.35B. As of TTM 8/03/13, the Company generated $2.6B in revenues and $384MM in EBITDA, respectively.

Due to a past quarter same-store sales miss this past August, a trend that was seen among many retailers, Chico's shares plummeted despite the Company's history of strong growth in its store base and EBITDA since 2009. We believe this sales miss makes an attractive entry point at current prices, as the market is pricing Chico's for zero growth, despite a...

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