Chico’s Stock

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Aug. 4th 2008 in Stocks

This specialty retailer caters to a market of middle aged women under the Chico’s (CHS) name plus a trendier crowd with its While House|Black Market stores. This stock was a former darling with perpetual same store sales growth. It’s fortunes changed a few years back and it has been posted double digit same store sales growth declines since.

Counterargument: The company has zero debt and 230 million in cash. They are still posting quarterly profits. Years upon years of constant same store sales growth have made comparisons difficult to beat, but sooner or later comps will go up against horrendous results and look good in comparison. The company’s key customer was the first group to start cutting back, so it might make sense for Chico’s to one day lead the revival in retail.

  • 52 Week High Price: $20.12
  • Recent Price: $5.50
  • Decline from 52 Week High: 73%

Chart courtesy of StockCharts.com

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