Women's clothing retailer Chico's FAS (NYSE: CHS) reported Wednesday that third quarter profits increased 27% year-over-year as sales improved.
For the third quarter, the company earned profits of $28.8 million, or 16 cents per diluted share, compared to profits of $22.7 million, or 13 cents per diluted share, for the year-ago period.
Third quarter revenues increased 8% year-over-year to $483 million, as comparable store sales increased 3.1%. Direct-to-consumer sales, which include internet and catalogue sales, increased 41% year-over-year to $34.4 million.
Analysts expected the company to earn a profit of 15 cents per diluted share on revenues of $477 million.
During the third quarter, the company opened a total of 26 stores, increasing the number of stores to 1,144.
At the end of the period, the company had $740 million in current assets, $21.9 million of which was in cash. Current liabilities totalled roughly $229 million.
The better-than-expected results prompted the company's shares to rally 10.7% to trade at $11.16 as of 2:44 pm ET Wednesday.