Chico's Good News Is Actually Full of Holes

Don't be fooled by the jump in Chico's (CHS Quote) stock Thursday. The retailer's latest quarter was another disappointment.

This onetime best-of-breed women's clothing seller has seen its days as a Wall Street darling come to a crashing halt. The company warned last summer that its growth was slowing sharply, and the stock has fallen nearly 50% from its high in February 2006.

Shares, however, recently were up $1.64, or 6.4%, to $27.26 after the company exceeded first-quarter earnings estimates. Still, the report did little to convince me that the situation is improving at the Chico's. ...