NEW YORK (TheStreet) -- Chico's FAS (CHS) - Get Report shares are slumping 5.07% to $10.30 in Thursday's pre-market trading session immediately following the fashion retailer's weaker-than-expected 2016 first quarter results, posted earlier this morning.
Adjusted earnings for the recent period came in at 25 cents a share, below Wall Street's estimates of 31 cents a share. Revenue of $643 million was also short of forecasts of $669 million.
The company's latest figures were down from a year ago, when it earned 30 cents a share on revenue of $697.8 million.
Year-over-year, same-store sales declined 4.2%. In order to improve its supply chain and other areas of the business, the company said it is looking to trim costs and generate between $50 million and $70 million in annual savings.
"Our cost reduction and operating efficiency initiatives will position us to be more nimble and responsive to our customers' needs," CEO Shelley Broader stated. "These actions are just the beginning as we execute on our new operating priorities."
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
Recently, 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.
You can view the full analysis from the report here: CHS