Chico’s FAS Inc. shares CHS, -7.78% rose 1.9% in premarket trade Friday, after the company announced an overhaul of its operations with the aim of improving its online offering and customer service. The retailer said it has invested in technology and tools to improve its omnichannel capabilities and is reviewing its operations to find cost savings and efficiency improvements. The company will close 250 stores in the U.S. over the next three years as it expands its digital network, taking advantage of expiring leases. Chico’s is also updating its fourth-quarter guidance and said sales and same-store sales were trending better than its previous outlook. It is now expecting sales to be down in the low double-digits, compared with a prior expectation of a mid-teens decline. Fourth-quarter gross margins are expected to decline by about 500 basis points compared with 2017, compared with a previous expectations for a decline of 400 to 500 basis points. Shares have fallen 56% in the last 12 months, while the S&P 500 SPX, +0.45% has fallen 6%.
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