Shares were climbing 12.6% to $3.84 after the market opened.
The Fort Meyers, Florida-based company reported net income of $2 million, or 2 cents share, down from $29 million, or 23 cents a share, a year ago. Adjusted net income for the most recent quarter came to $5.6 million, or 5 cents a share, which beat analysts' expectations of 3 cents.
Sales fell 7.8% to $517.7 million but were ahead of Wall Street's call for $517.6 million. However, same-store sales fell 7%, wider than analysts' forecasts of a 6.5% decline. Chico's said the same-store sales decline was driven by lower average dollar sale and a decrease in transaction count.
For the second quarter, Chico's said it expects a mid-single digit decline in total net sales and consolidated comparable sales due to expected softer sales in its White House Black Market brand. Sales at the Chico's and Soma brands are expected to improve in the second quarter.
For fiscal 2019, Chico's reduced its guidance to low-to mid-single digit decline in total net sales and consolidated comparable sales, compared with its previous guidance of a low-single digit decline in total net sales and consolidated comparable sales. The company also lowered its gross margin as a percent of sales guidance to be down 50 to 100 basis points from flat to down 50 basis points.
In addition, Chico's said it was making progress on its search for a permanent CEO. The board's search committee has met with a number of candidates and "is pleased with the quality of the apparel executives with merchandising experience that it is seeing."