Chico's Stock Soars as Profit Doubles

Chico's is gaining after profit more than doubles in its second quarter.
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NEW YORK (

TheStreet

) --

Chico's

(CHS) - Get Report

stock is surging as its second-quarter profit more than doubled.

During the quarter, the women's apparel retailer earned $30.5 million, or 17 cents a share, compared with $14.9 million, or 8 cents, in the year-ago period. Analysts were calling for a profit of 16 cents a share for Chico's.

Chico's revenue grew 11% to $465.4 million from $419.9 million, while same-store sales jumped 6.4%. Sales were led by an 11.2% surge in same-store sales at Chico's White House/Black Market chain.

Still, total Chico's sales fell below analysts' estimates of $468.1 million.

Gross margins rose 0.7 percentage points to 55.7%, boosted by outlet-only merchandise.

Shares of Chico's are spiking 9% to $9.16 in Wednesday morning trading.

-- Reported by Jeanine Poggi in New York.

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