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If Chico's reports comps on Thursday May 7 consistent with their trend of the past three months of 25%+ look for earnings estimates to rise again. Consensus estimates for the first quarter of $.19 should easily be beaten. I would think Chico's could earn $.21 to $.24 cents for the quarter and estimates for the year which are currently $.55 could rise to $.60 to $.65. It seems that Chico's has set themselves on the right track with changes in their design department, production and delivery, which have lead to the dramatic upsurge in comps. It also seems that the company's direct mailing has started to pay significant dividends in name recognition for Chico. Also look for Chico's to initiate their Passport Club which they stopped in 1994. Today it has 20,000 members who receive a 5% discount when they have purchased $500 in merchandise. I look for Chico's stock to reach $12-$15 over the next 6 months if they deliver like I think they can on the bottom line. | ||||||||||||||
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