Chico’s FAS (NYSE:CHS) shares lower on weak sales
- Florida-based company reports 7.1% drop in total sales for first quarter
- Soma business provides a silver lining as comparable sales grow 3.4%
- Guides low-to mid-single digit fall in sales for 2019
- Shares plunge 6.16% to $3.20
Chico’s FAS (NYSE:CHS) shares slumped to a 52-week low in Tuesday’s premarket after the retail company said comparable sales declined 7% in Q1.
The firm also noted that several factors contributed to slimmer gross margins of 36.9%, down from 40.4% in Q1 2018, including accelerated depreciation and costs related to omnichannel programs. It now expects total net sales to fall by around 4-6% in Q2.