Alan Brochstein, CFA
Contrarian, growth at reasonable price, management change, cannabis stocks

Chico's FAS Attracts Activist Investor Cliff Robbins

Retailer Chico's FAS (NYSE:CHS) has posted back-to-back disappointing quarters, and the recent price decline (-13% YTD) reflects a sharp erosion in the likely earnings for 2013, now projected to decline 4% after analysts had projected about 16% growth when the year began. The weak performance has been partially a function of external factors, especially in Q1, but the company executed poorly by its own admission in Q2, though in a tough retail environment and against challenging comparisons from a year ago. I have been bullish on CHS for many reasons, as I detailed six months ago, including their smart "omni-channel" capabilities, a physical store roll-out for Boston Proper, a potential expansion into Canada, and a turnaround in...

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