(RTTNews) -  Women's specialty retailer Chico's FAS Inc. (CHS: News ) on Wednesday reported a surge in profit for the third quarter from last year, helped by higher sales and margins. Consolidated comparable store sales for the quarter increased 12.8%. On a per share basis, earnings beat analysts' consensus estimate. Following the announcement of the results, the company's shares are up 10% in the pre-market trading.

Third-Quarter Results

The Fort Myers, Florida-based company's net income for the third quarter rose to $22.75 million or $0.13 per share from $2.00 million or $0.01 per share in the year-ago quarter.
On average, nineteen analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 13.3% to $446.86 million from $394.24 million in the year-ago quarter. Analysts had a consensus revenue estimate of $414.71 million for the quarter.

Peer Performance

Among others in the industry, Nordstrom Inc. (JWN: News ) reported a 17% increase in profit for the third quarter from the same period last year on higher sales. The company reported net earnings of $83 million or $0.38 per share for the third quarter, up from $71 million or $0.33 per share in the prior-year quarter. Total revenues for the quarter grew 4% to $1.96 billion from $1.88 billion in the previous-year quarter. Same-store sales for the quarter decreased 1.2% over a year ago.

Other Metrics
Chico's said that net sales by Chico's/Soma stores for the third quarter rose to $300.96 million from $269.08 million in the previous-year quarter. Net sales by White House | Black Market stores advanced to $121.41 million from $106.75 million in the prior-year quarter. Net sales by direct-to-consumer surged 33% to $24.50 million from $18.41 million in the same period last year.

Consolidated comparable store sales increased 12.8% for the thirteen-week period ended October 31, 2009, compared to a 13.4% decrease for the corresponding period in the previous year.

The Chico's/Soma Intimates brands' comparable store sales increased 12.2% during the quarter, compared to a 16.2% decrease for the same period last year. The WH|BM brand's comparable store sales increased 14.4%, compared to a 4.8% decrease for the year-ago period. Direct-to-consumer sales, not included in comparable store sales, surged about 33% over the year-ago period.

The company's gross margin for the quarter, expressed as a percentage of net sales, increased by 400 basis points to 57.6% from 53.6% in the year-ago quarter. In dollar terms, gross margin for the quarter increased to $257.28 million from $211.37 million a year ago.

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