Analysts polled by Thomson Reuters, who exclude one-time items, were expecting the company to post a 17-cent-per-share loss on revenues of $373.1 million.

Chico's has suffered the past couple of years from a number of missteps, including what new CEO David Dyer pointed out: "We have become just a little too predictable and a little too cookie cutter."

Throw in a nasty recession with consumers reigning in spending, and it's not hard to see why the shares have come down from the high $20s to the current price of $ 4.31.

Dyer says the Chico's customer is still passionate about the company, is rooting for its success and "wants her store back."

He said she wants more sophisticated and unique merchandise, and the great customer service that the company is known for. Dyer also said too many non-selling tasks have distracted Chico's associates from their No. 1 job -- delivering amazing personal service.

The company said it will begin to beef up store schedules during peak selling periods and simplify store tasks in order to renew the emphasis on the customer experience. In addition, it will also reduce overlapping coupons, improve monthly mailings and add television back into the media mix for fall.

Dyer said that most importantly product assortment will become the subject of laser-like focus. White House/Black Market will get more marketing dollars behind it to promote the chain as a "fashion designer brand." The chain received some free publicity last year when future first lady Michelle Obama wore one of the chain's fashions for an appearance on the talk show "The View."

The company's Soma Intimates chain, which currently has 80 stores, could grow into a $600 million to $1 billion business with 300 to 400 stores over time. It is expected to make a positive cash contribution to Chico's by the end of 2010.

Dyer is positive about the future for Chico's. His new management team is attacking expenses with a great sense of urgency, slowing store growth and making needed changes. The balance sheet shows $270 million in cash and no debt, so the company has a lot of financial flexibility to take advantage of opportunities when they arise.

Jamie Dlugosch is a contributor to OptionsZone.com.