What is the future of Chicos CHS?

DirtyD answered 4 months ago …

The only bright spot on CHS right now is that the company has no long term debt. This is much different than what happened to Gap Stores several years ago - the company had too much debt, needed to renegotiate it while the company was trying to revamp its brand image and change up its product mix, a juggling act to say the least.

Recent earnings reports show that the company is doing all the right things. Cost control, marking down unpopular inventory to get it out of the stores faster, managing cash flow, etc. The CEO is saying all the right things. But in this environment/economy, it's tough to tell what retailers will do quarter to quarter. I agree with a lot of the TickerHound members who are talking up the discount retailers - when an economy is heading south, the guys charging the lowest prices will do well.

So I guess I don't quite know where CHS is headed, but if this is a long term play then current prices seem attractive - especially if the stock sells off more today (which it probably will). I mean, how much worse can things get? haha