Chico's FAS, Inc. becomes the latest retailer to sell its Chico's brand merchandise and accessories on Amazon.com, Inc. (AMZN - Free Report) starting mid-May. As a result, customers can avail Chico's brand’s assortments, including Travelers, no-iron shirts, Zenergy athleisure and So Slimming pants along with the brand’s iconic jewelry on Amazon. In fact, the company’s other brands such as White House Black Market and Soma products are also in the queue to be launched on Amazon, depending on customers’ reaction to the rollout of the Chico’s brand.
Notably, Chico's brand select assortments will be available for Prime members, including free shipping and returns with other benefits. However, this partnership will not affect Chico's control on the pricing, marketing and promotional activities for its products on Amazon. Furthermore, the deal will have a minimal impact on the company’s fiscal 2018 financial numbers due to the short period after the launch.
With this, Chico's FAS joins the bandwagon of retailers like NIKE, Inc. (NKE - Free Report) , Kohl's Corporation (KSS - Free Report) and Sears Holdings Corporation (SHLD - Free Report) who are already selling their products on Amazon. This shows e-commerce giant, Amazon, is well on track to become the nation’s largest online apparel retailer.
Shares of this leading retailer of women's clothing and accessories were down 2.4% yesterday after the Chico's FAS-Amazon partnership news. Moreover, this Zacks Rank #4 (Sell) stock has lost 28.6% in a year, wider than its industry’s decline of 1.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This underperformance can be attributed to Chico's FAS dismal surprise history. Apparently, the company has lagged or matched earnings and sales estimates in three of the trailing four quarters. Also, it has been witnessing declining comparable-store sales (comps) across its brands, which in turn, are marring the overall comps and top-line growth. For fiscal 2018, consolidated comps are projected to fall in low single-digits.
Though this partnership between Chico's FAS and Amazon will not have a material impact on the former’s financial performance in the near term, we believe that it will surely aid the company’s top-line growth and generate additional sales, besides boosting profitability.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Chico's FAS, Inc. becomes the latest retailer to sell its Chico's brand merchandise and accessories on Amazon.com, Inc. (AMZN - Free Report) starting mid-May. As a result, customers can avail Chico's brand’s assortments, including Travelers, no-iron shirts, Zenergy athleisure and So Slimming pants along with the brand’s iconic jewelry on Amazon. In fact, the company’s other brands such as White House Black Market and Soma products are also in the queue to be launched on Amazon, depending on customers’ reaction to the rollout of the Chico’s brand.
Notably, Chico's brand select assortments will be available for Prime members, including free shipping and returns with other benefits. However, this partnership will not affect Chico's control on the pricing, marketing and promotional activities for its products on Amazon. Furthermore, the deal will have a minimal impact on the company’s fiscal 2018 financial numbers due to the short period after the launch.
With this, Chico's FAS joins the bandwagon of retailers like NIKE, Inc. (NKE - Free Report) , Kohl's Corporation (KSS - Free Report) and Sears Holdings Corporation (SHLD - Free Report) who are already selling their products on Amazon. This shows e-commerce giant, Amazon, is well on track to become the nation’s largest online apparel retailer.
Shares of this leading retailer of women's clothing and accessories were down 2.4% yesterday after the Chico's FAS-Amazon partnership news. Moreover, this Zacks Rank #4 (Sell) stock has lost 28.6% in a year, wider than its industry’s decline of 1.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This underperformance can be attributed to Chico's FAS dismal surprise history. Apparently, the company has lagged or matched earnings and sales estimates in three of the trailing four quarters. Also, it has been witnessing declining comparable-store sales (comps) across its brands, which in turn, are marring the overall comps and top-line growth. For fiscal 2018, consolidated comps are projected to fall in low single-digits.
Though this partnership between Chico's FAS and Amazon will not have a material impact on the former’s financial performance in the near term, we believe that it will surely aid the company’s top-line growth and generate additional sales, besides boosting profitability.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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