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Chico's (CHS) Unveils $100 Million Share Buyback Program
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Chico's FAS, Inc. recently made a significant move to reward its shareholders. This Florida-based fashion company announced the authorization of a new share repurchase program, reaffirming its commitment to delivering value. Under this program, Chico's has the authority to repurchase up to $100 million of its common stock.
Additionally, the company canceled the remaining portion of its previous share repurchase program, which was unveiled in November 2015 with a total value of $300 million. Notably, Chico's has already completed all but $35.4 million of the prior repurchase authorization. During first-quarter fiscal 2023, Chico's repurchased 3.25 million shares worth approximately $20 million.
Share repurchase programs have become a popular tool to optimize capital allocation and drive shareholder value. When implemented thoughtfully, these programs can benefit investors through increased EPS and potential capital appreciation. This strategic move demonstrates the confidence that the board of directors places in the long-term prospects and intrinsic value of the company.
Image Source: Zacks Investment Research
Chico's is a renowned player in the women's apparel market, offering a diverse range of stylish and high-quality clothing, accessories, and intimates. With a focus on providing unique and personalized experiences to its customers, the company has established a strong brand presence and a loyal customer base. By leveraging its robust financial position, Chico's can utilize the share repurchase program to enhance shareholder value while maintaining its commitment to prudent capital management.
Wrapping Up
Chico's efforts to become a “digital-first, customer-led” company coupled with a strong portfolio of three unique brands, namely Chico's, White House Black Market (WHBM) and Soma, position it well to expand its market share. Product enhancement, planned inventories and disciplined marketing strategies have been helping the company to drive full-price selling and produce higher gross margin.
Investors can look forward to the positive impact of the recently announced share repurchase program as Chico's continues to navigate the dynamic women's apparel industry and capitalize on future opportunities.
Shares of this Zacks Rank #3 (Hold) company have advanced 7.3% so far in the year against the industry’s decline of 7.6%.
Pick These 3 Stocks
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , Urban Outfitters (URBN - Free Report) and G-III Apparel Group (GIII - Free Report) .
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 3.4% and 732%, respectively, from the year-ago reported figures. ANF delivered a trailing four-quarter earnings surprise of 480.6%, on average.
Urban Outfitters, the lifestyle apparel and accessories retailer, currently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 12.2%, on average.
The consensus estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 5.1% and 57.1%, respectively, from the year-ago reported figures. The expected EPS growth rate for three to five years is 18%.
G-III Apparel, a global fashion leader with expertise in design, sourcing and manufacturing, currently sports a Zacks Rank #1. G-III Apparel delivered an average earnings surprise of 47.4% in the trailing four quarters.
The Zacks Consensus Estimate for G-III Apparel’s current financial-year sales suggests growth of 1.9% from the year-ago period. The expected EPS growth rate for three to five years is 15%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Chico's (CHS) Unveils $100 Million Share Buyback Program
Chico's FAS, Inc. recently made a significant move to reward its shareholders. This Florida-based fashion company announced the authorization of a new share repurchase program, reaffirming its commitment to delivering value. Under this program, Chico's has the authority to repurchase up to $100 million of its common stock.
Additionally, the company canceled the remaining portion of its previous share repurchase program, which was unveiled in November 2015 with a total value of $300 million. Notably, Chico's has already completed all but $35.4 million of the prior repurchase authorization. During first-quarter fiscal 2023, Chico's repurchased 3.25 million shares worth approximately $20 million.
Share repurchase programs have become a popular tool to optimize capital allocation and drive shareholder value. When implemented thoughtfully, these programs can benefit investors through increased EPS and potential capital appreciation. This strategic move demonstrates the confidence that the board of directors places in the long-term prospects and intrinsic value of the company.
Image Source: Zacks Investment Research
Chico's is a renowned player in the women's apparel market, offering a diverse range of stylish and high-quality clothing, accessories, and intimates. With a focus on providing unique and personalized experiences to its customers, the company has established a strong brand presence and a loyal customer base. By leveraging its robust financial position, Chico's can utilize the share repurchase program to enhance shareholder value while maintaining its commitment to prudent capital management.
Wrapping Up
Chico's efforts to become a “digital-first, customer-led” company coupled with a strong portfolio of three unique brands, namely Chico's, White House Black Market (WHBM) and Soma, position it well to expand its market share. Product enhancement, planned inventories and disciplined marketing strategies have been helping the company to drive full-price selling and produce higher gross margin.
Investors can look forward to the positive impact of the recently announced share repurchase program as Chico's continues to navigate the dynamic women's apparel industry and capitalize on future opportunities.
Shares of this Zacks Rank #3 (Hold) company have advanced 7.3% so far in the year against the industry’s decline of 7.6%.
Pick These 3 Stocks
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , Urban Outfitters (URBN - Free Report) and G-III Apparel Group (GIII - Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 3.4% and 732%, respectively, from the year-ago reported figures. ANF delivered a trailing four-quarter earnings surprise of 480.6%, on average.
Urban Outfitters, the lifestyle apparel and accessories retailer, currently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 12.2%, on average.
The consensus estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 5.1% and 57.1%, respectively, from the year-ago reported figures. The expected EPS growth rate for three to five years is 18%.
G-III Apparel, a global fashion leader with expertise in design, sourcing and manufacturing, currently sports a Zacks Rank #1. G-III Apparel delivered an average earnings surprise of 47.4% in the trailing four quarters.
The Zacks Consensus Estimate for G-III Apparel’s current financial-year sales suggests growth of 1.9% from the year-ago period. The expected EPS growth rate for three to five years is 15%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.