Francesca's 1Q revenue falls short

Francesca's 1st quarter profit up but its revenue falls short of expectations, shares tumble

Associated Press

HOUSTON (AP) -- Francesca's Holdings Corp.'s shares fell 7 percent in extended trading Wednesday after the clothing and accessories company's fiscal first-quarter revenue fell shy of market expectations.

The company reported after the market closed that it earned $10.9 million, or 24 cents per share, for the quarter versus $8.7 million, or 20 cents per share, last year. After adjusting for tax charges for a secondary offering it earned 26 cents per share in the most recent quarter versus 21 cents per share last year.

Francesca's total revenue increased 29 percent to $79 million, helped by a larger base of stores. The company, based in Houston, opened 56 new boutiques during the quarter to bring its total to 416 stores.

Analysts polled by FactSet were anticipating adjusted earnings of 26 cents per share on revenue of $79.6 million for the quarter.

Francesca's said its sales gains were strongest in its jewelry and accessories departments during the quarter. The company said poor weather hurt its revenue from stores open at least a year, which was flat for the quarter. That is considered a key indicator of financial performance as it strips away the impact of recently opened or closed sites. The measure excludes its direct-to-consumer sales, which typically measures sales online or through catalogs. Its direct-to-consumer revenue increased 97 percent for the quarter.

Francesca's said it expects to earn between 35 and 36 cents per share for its second quarter on an adjusted basis on revenue between $94.5 million and $95.5 million. Analysts were anticipating earnings of 35 cents per share on revenue of $94.7 million.

For the full year, the company expects to earn between $1.27 and $1.30 per share on an adjusted basis with revenue between $365 million and $370 million. Analysts were anticipating earnings of $1.30 per share for the year on revenue of $370 million.

Shares fell $2.19 to $27.90 in after-hours trading. Its stock increased 55 cents to close regular trading at $30.09.

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