NEW YORK (TheStreet) --Shares of Chico's FAS Inc. (CHS) are lower by -5.18% to $15.19 at the start of trading on Wednesday, after the company reported a decline in 2014 second quarter net income to $30.1 million, or 20 cents per diluted share, from $43.6 million, or 27 cents per diluted share for the year ago quarter.
Analysts polled by Thomson Reuters expected the clothing and accessories retailer to post earnings of 26 cents per share for the most recent quarter.
However, the company's net sales increased 3.3% to $671.1 million, from $649.5 million for the 2013 second quarter, but fell short of the $678 million analysts were expecting.
Chico's said its lower profit was the result of reductions in prices as stores worked to sell seasonal merchandise.
Separately, TheStreet Ratings team rates CHICOS FAS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHICOS FAS INC (CHS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year."