Sector Snap: Women's Apparel 1Q Results Improve

"Improving trends have been visible at Chico's earlier than planned, with fall expected to provide further improvement," she wrote in a note to investors on Wednesday. "Store presentation and merchandise selection has improved with key items and new fashion trends tested for fall with good results."

Chico's shares rose 65 cents, or 7.3 percent, to $9.50 during afternoon trading, after reaching a 52-week high of $9.89. The stock had traded between $1.72 and $9 during the past 52 weeks.

Meanwhile, Charming Shoppes Inc., which operates Lane Bryant and Fashion Bug stores, reported a smaller than expected fiscal first-quarter loss. Shares rose 11 cents, or 3.1 percent, to $3.69 during afternoon trading. The stock has traded between 45 cents and $6.35 during the past year.