Palm Beach, FL 2/22/12 (StreetBeat) -- Chico's FAS Inc (NYSE: CHS) reported a 21 percent rise in holiday quarter earnings that beat estimates, as strong demand for its pricier White House Black Market and Soma Intimates brands offset big discounts at its namesake division, sending its shares up 9 percent.The retailer, which like Ann Inc caters to women over 35, has benefited from increased traffic after redoing its clothing line, and as a result, Chico's forecast strong sales trends for this year.
For the fiscal 2012, the Fort Myers, Florida-based retailer expects sales of about $2.5 billion, above market estimates.
Gross margins slid to 52.3 percent from 53.2 percent a year ago. However, that was a smaller slide than what the company had expected earlier.
In the fourth quarter that ended Jan. 28, Chico's earned $25.1 million, or 15 cents per share, compared with $20.7 million, or 12 cents per share, a year earlier.
Sales rose 20 percent to $569.2 million.
Analysts, on average, were expecting the company to earn 11 cents a share, on sales of 546.7 million, according to Thomson Reuters I/B/E/S.
Chico's shares were higher at $14 Wednesday in premarket trading from Tuesday's close of $12.81 on the New York Stock Exchange.
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