(Recasts lead to work in estimates, share rise)

By Aarthi Sivaraman

NEW YORK, May 28 (Reuters) - Chico's FAS Inc (CHS.N: Quote, Profile, Research) posted better-than-expected quarterly profit on Wednesday and left its first-half forecast unchanged, reassuring investors who sent shares of the women's apparel retailer up 11 percent.

The company, which operates the White House/Black Market and SOMA Intimates stores in addition to its namesake chain, also said it would stay focused on managing its inventory and controlling expenses.

It also pointed to the possibility of better results in the second half of the year.

"Our current expectations are to gradually improve and return to positive comparable-store sales increases sometime in the second half of 2008 if we can expect some level of improvement in the economic environment resulting in overall earnings growth during this time frame," Chief Executive Scott Edmonds said during a conference call.

Net profit was $12.7 million, or 7 cents per share, in the first quarter ended May 3, compared with $47.2 million, or 27 cents per share, a year earlier.

Analysts, on average, expected earnings of 6 cents a share, according to Reuters Estimates.

Sales fell 9.6 percent to $409.6 million as same-store sales -- a key gauge of retail strength that tracks sales at established stores -- declined 17.5 percent.