Shares of apparel retailer Chico’s FAS popped more than 12 percent in intraday trade Wednesday after better-than-expected earnings.
Second-quarter adjusted earnings came in at 25 cents a share, beating estimates of 22 cents, according to the firm’s quarterly report released late Tuesday.
Revenue also beat at $636 million, versus $632 million expected. The company pointed to its cost-reduction initiatives, which began in May.
“We believe that the organizational redesign announced today will enable us to be more nimble and responsive to our customers’ evolving needs,” said CEO and President Shelley Broader in a press release Tuesday.
As part of the restructuring, Chico’s Brand President Cynthia Murray is leaving the company.
Chico’s 12-month performance
Despite Wednesday’s gains, Chico’s stock is down about 15 percent for the past 12 months.
Analysts at Stifel Nicolaus reiterated a “hold” rating on the stock in its research note Tuesday saying, “We believe results will continue to be held back due to lack of improvement in product.”
Chico’s operated 1,517 stores in the United States and Canada as of July 30.