Based on Viewer's earnings sentiment analysis in the Retail sector, we recently warned of supply chain issues impacting Retail in Q4. Is Chico’s the first among many in the sector to drop, or is it an outlier given it’s niche status?
Chico’s (CHS) disappointing earnings this morning mirrored our warning from the Retail sector alert we sent earlier this week. In that article Amenity Viewer’s earnings sentiment analysis noted supply chain pressures affecting key industry players heading into the holiday season.
This morning retailer Chico’s provided the first commentary on the start of the Holiday Season in its Q3 earnings call. Results for the October quarter were disappointing, sending the stock down more than 30%. Not surprisingly, the high-level sentiment analysis in the Amenity Viewer showed a significant decline from Q2, with deterioration across Key Drivers including Guidance, Cost-Price, Market Position, and Financial.
For the broader read-through to other retailers, we highlight a few key comments from our earnings analysis. Although Chico's is a niche retailer facing other secular pressures, the following comments could have implications for other retailers if shipping costs and supply chain pressures offset a Black Friday demand uptick.
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This communication does not represent investment advice. Transcript text provided by S&P Global Market Intelligence.
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