Francesca's (FRAN) Misses Q1 EPS by 2c, Miss on Revenues; Lowers FY18 EPS Guidance

Francesca's (NASDAQ: FRAN) reported Q1 EPS of $0.12, $0.02 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $107.7 million versus the consensus estimate of $113.15 million.

GUIDANCE:

Francesca's sees FY2017 EPS of $1.07-$1.17, versus the consensus of $1.15. Francesca's sees FY2017 revenue of $518-537 million, versus the consensus of $530.42 million.

SECOND QUARTER AND REVISED FISCAL YEAR 2017 GUIDANCE

For the second quarter ending July 29, 2017, net sales are expected to be in the range of $120 million to $124 million; assuming a 3% decrease to a 1% increase in comparable sales compared to flat in the prior year. The Company plans to open approximately 18 new boutiques and close approximately six existing boutiques during the second quarter. Diluted earnings per share are expected to be in the range of $0.13 to $0.18.

For the fiscal year ending February 3, 2018, net sales are expected to be in the range of $518 million to $537 million; assuming a 2% decrease to a 2% increase in comparable sales compared to the prior year increase of 2%. The Company expects to open approximately 60 to 65 boutiques and close approximately 10 to 15 boutiques in fiscal year 2017, compared to 64 new boutiques opened and nine boutiques closed in fiscal year 2016. Diluted earnings per share are expected to be in the range of $1.07 to $1.17 compared to the prior year of $1.09 and prior guidance of $1.11 to $1.21. The number of average diluted shares for the full year assumed in guidance is 36.8 million shares. The effective tax rate is estimated to be 38%.

Highlights

• Net sales increase 1% to $107.7 million
• Comparable sales decreased 5%
• Diluted earnings per share were $0.12

For earnings history and earnings-related data on Francesca's (FRAN) click here.

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