Francesca's (FRAN) Tops Q3 EPS by 1c, Revenues Beat; Offers Updated FY18 EPS/Revenue Guidance Below Consensus

Francesca's (NASDAQ: FRAN) reported Q3 EPS of ($0.17), $0.01 better than the analyst estimate of ($0.18). Revenue for the quarter came in at $95.4 million versus the consensus estimate of $95.1 million.

Net sales decreased 10% to $95.4 million and comparable sales decreased 14%
Diluted loss per share was $0.47
Adjusted diluted loss per share was $0.17
Company recorded non-cash impairment charges of $14.4 million
Company revises fiscal 2018 guidance

HOUSTON, Dec. 11, 2018 (GLOBE NEWSWIRE) -- Francesca’s Holdings Corporation (Nasdaq: FRAN) today reported financial results for the third quarter ended November 3, 2018.

Steve Lawrence, President and CEO, stated, “While we saw comparable sales declines start to narrow as we moved into the fourth quarter, we recognize the need to accelerate change and improve results faster. Our biggest challenge and focus is to drive improved traffic trends in brick and mortar. We are stepping up our marketing efforts with increased investments in influencers, and digital and social media. Our primary focus of this is to increase frequency of visits with existing guests through increased engagement, while winning back lapsed shoppers who have not purchased with us in the last six to twelve months. We have also engaged with a consulting firm to help us drive traffic through a variety of merchandising initiatives including attention grabbing window displays and lease line presentations.”

Mr. Lawrence continued, “As we navigate through these challenging trends, we remain focused on maintaining strong inventory disciplines, diligent expense management, and a healthy balance sheet. We are also evaluating our real estate portfolio to close underperformers. We believe the right long-term strategy for success is to have a strong ecommerce business which complements a vibrant brick and mortar footprint, and to accomplish this, we need to optimize our real estate portfolio. We believe the actions we are taking will help stabilize our business and we will be able to move back to top line and bottom line growth while solidifying our unique position as the only national chain of boutiques.”

GUIDANCE:

Francesca's sees FY2018 EPS of ($0.41)-($0.34), versus the consensus of ($0.09). Francesca's sees FY2018 revenue of $427-433 million, versus the consensus of $434.65 million.

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

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