NEW YORK (TheStreet) -- Shares of Chico's (CHS) - Get Chico's FAS, Inc. Report were soaring 12.08% to $12.66 on heavy trading volume early Wednesday afternoon after reporting better-than-expected earnings and revenue for the 2016 second quarter.
After yesterday's market close, the Fort Myers, FL-based retailer posted adjusted earnings of 25 cents per share, topping analysts' estimates of 22 cents a share.
Revenue fell 7.3% year-over-year to $636 million in the most recent period, but beat analysts' projections of $632 million.
Same-store sales declined 3.1% amid lower average sales and a drop in transactions, Chico's said in a statement. The company expects a low single-digit comparable sales decline in the second half of 2016.
Additionally, Chico's Brand President Cynthia Murray is leaving the company, and a search for her replacement is underway. Her departure is part of a cost-cutting strategy expected to save the company between $90 million and $110 million in future annualized costs.
About 9.83 million shares of Chico's have been traded so far today, well above its average trading volume of roughly 1.86 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Chico's strengths such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share are countered by weaknesses including disappointing return on equity, weak operating cash flow and deteriorating net income.
You can view the full analysis from the report here: CHS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.