Chico´s and A&F disappoint market

Chico's said Q1 EPS rose 23% to 32 cents, beating expectations by 2 cents, its ninth quarter

of double-digit EPS growth. Sales rose 21% to $650.8 million, above views of $630.4 million, and its best gain in years, reported ‘Investors.com’.

For fiscal 2012, including Boston Proper, Chico´s Fas expects  net sales increase “at a mid to high teens %age rate to approximately $2.5 to 2.6 billion, which includes comparable sales growth at a mid-single digit rate, approximately 9% growth in store square footage and approximately $30 million in sales from the 53rd week.” Following the company´s outlook for the current year, gross margin rate down approximately 50 basis points; SG&A expense, as a %age of net sales, down approximately 50 basis points; effective tax rate will be approximately 38% and inventories will keep in-line with sales growth. Finally, they are planning for a capital expenditures up to $150 million, which include 120 to 130 gross new stores.

Meanwhile, Foot Locker announced that its Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.18 per share, which will be payable on July 27, 2012 to shareholders of record on July 13, 2012.

Still in wall Street, Abercrombie & Fitch (ANF) first-quarter profit beat estimates on Wednesday but same-store sales fell. Chico's FAS (CHS) beat expectations with new style offerings. As reported by Investors.com, A&F said Q1 profit fell 89% to 3 cents per share, but it topped views by a penny. Sales rose 10% to $921.2 million, missing estimates of $951.97 million. Shares fell 14.6% to 38.78.

"While we are disappointed that European sales trends remain challenging in a very difficult macroeconomic environment, we are largely satisfied with our overall performance for the quarter in that context," CEO Mike Jeffries said when commenting the quarterly figures. Abercrombie maintains its EPS guidance of $3.50-$3.75 for the year while analysts are expecting $3.56. Abercrombie & Fitch declined 7.1% after the apparel retailer reported fiscal first-quarter revenue.

As many other small-cap stocks hit by the gloomy European markets on Wednesday, Skechers USA shares fell 2.6 % to $17.80. The S&P MidCap 400 index fell 0.5 % while the S&P SmallCap 600 index lost 0.3 %. In comparison, the benchmark S&P 500 fell 0.2%.

In Europe, Benetton Group reported revenue of €428 million, diminished by  5.5% against first quarter 2011. Gross operating profit was 44%, down from 44.7% for the same period a year ago. Net income for the quarter reached €10 million. Group net revenues in the first quarter of the year were € 428 million, down in line with expectations compared with the same period of 2011 (-5.5% at current exchange rates and -5.7% currency neutral). However, direct sales performance was positive on a like-for-like basis with 6.1% growth compared with the same period of the previous year. As a whole, the Italian retailer disappointed the market and closed lower, losing 0.04% by the market´s close.