Chico's profits rise

FORT MYERS — Women's retailer Chico's FAS reported net income rose 23% to $53.4 million on net sales of nearly $641.7 million in the quarter ending July 28 compared with the same quarter one year ago.

The results boosted Chico's shares up nearly 8% at mid-morning to more than $18.40 a share (stock symbol: CHS).

Sales at stores open longer than a year rose 5.6% in the second quarter, reflecting increases in transactions and average sales.

The company's net sales of $641.7 million in the second quarter represented an increase of 16.4% compared with the $551.4 million in sales in the second quarter of 2011. In addition to the boost in sales at existing stores, the company's revenues rose as the result of a 7.4% increase in store square footage and $32.6 million in sales from newly acquired Boston Proper.

Chico's also continued to repurchase its shares in the second quarter. For the year ending July 28, Chico's has repurchased 9 million shares for $110.6 million.

For fiscal 2012, Chico's projects sales of $2.55 billion to $2.6 billion with stores open longer than one year growing at mid-single-digit percentage rates.

Chico's owns and operates 1,327 stores under the brands Chico's, White House | Black Market, Soma Intimates and the online retailer Boston Proper.