What Happened:

Shares of women’s apparel and accessories retailer Chico’s FAS (NYSE:CHS) jumped 7.42% in the pre-market session after the company reported second quarter profits ahead of expectations as adjusted earnings per share (EPS) exceeded Wall Street's estimates. 

On the other hand, the company missed Wall Street analysts' expectations for same-store sales and revenue. The major negative was that the company reduced its full year revenue and EPS guidance. Next quarter's revenue and EPS guidance are also below expectations. Overall, the results could have been better, but the stock is likely up reflecting low expectations going into the earnings report.

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What is the market telling us:

CHS's shares are somewhat volatile and over the last year have had 33 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Chico's is up 16.1% since the beginning of the year, but at $5.63 per share it is still trading 21.5% below its 52-week high of $7.17 from November 2022. Investors who bought $1,000 worth of CHS's shares five years ago would now be looking at an investment worth $668.83.

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