"Our Fall line has been well received and we have seen better-than-expected gross margins early in the season," Scott A. Edmonds, president and CEO, said in a statement. At the end of Monday's trading day, shares of Chico's were up $1.95 to $35.76.

The company said it sustained limited damage to its stores from Hurricane Katrina and Rita. Six stores remain closed in the New Orleans area, and others continue to see reduced sales as the areas recover. "We are pleased to see that our same-store and overall sales levels have remained solid during this period as we respond to the effects of the hurricanes," Edmonds said.

The company operates 13 stores in Louisiana and 27 along the Gulf Coast of Texas. In total, the company operates 723 women's specialty stores, including stores in 47 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico operating under the Chico's, White House|Black Market and Soma by Chico's names. The company owns 481 Chico's front-line stores, 28 Chico's outlet stores, 185 White House|Black Market front-line stores, six White House|Black Market outlet stores and 10 Soma by Chico's stores. Franchisees own and operate 13 Chico's stores.