Francesca’s gives weak outlook
Francesca's Holdings Corp.’s same-store sales sank in the fourth quarter amid weak traffic.
Net income totaled $3.7 million, or 10 cents per share, down from $14.6 million, or 39 cents per share, in the year-ago period. Adjusted EPS was 20 cents, one cents more than analysts had expected.
The apparel and accessories retailer’s revenue fell 5% to $138.5 million, down from $146.3 million last year. Same-store sales fell 15%, which the company attributed to traffic declines and merchandise misses. Analysts had expected sales of $138.0 million, and a same-store sales decline of 5.5%.
For the full year, net sales decreased 3% to $471.7 million, driven by an 11% decrease in comparable sales. Net income for totaled $15.6 million compared to $42.0 million in the prior year. Excluding the $3.3 million charge related to the remeasurement of the company's net deferred tax assets, adjusted net income totaled $18.9 million.
Francesca’s expects first-quarter sales in the range of $100 million to $103 million, a same-store sales decrease of 13% to 15% and a loss per share in the range of 10 cents to 13 cents. Analysts were looking for sales of $111.1 million, a same-store sales decline of 5%, and EPS of 14 cents.
“In 2018, we believe that we will return to ‘surprising and delighting' our guests with our improved merchandising assortment and boutique experience,” said Steve Lawrence, president and CEO, Francesca’s Holdings. “We expect that as our initiatives begin to take hold and we start to fully leverage the investments we made last year, we will see sequential quarter to quarter comparable sales improvement through the year.”
Net income totaled $3.7 million, or 10 cents per share, down from $14.6 million, or 39 cents per share, in the year-ago period. Adjusted EPS was 20 cents, one cents more than analysts had expected.
The apparel and accessories retailer’s revenue fell 5% to $138.5 million, down from $146.3 million last year. Same-store sales fell 15%, which the company attributed to traffic declines and merchandise misses. Analysts had expected sales of $138.0 million, and a same-store sales decline of 5.5%.
For the full year, net sales decreased 3% to $471.7 million, driven by an 11% decrease in comparable sales. Net income for totaled $15.6 million compared to $42.0 million in the prior year. Excluding the $3.3 million charge related to the remeasurement of the company's net deferred tax assets, adjusted net income totaled $18.9 million.
Francesca’s expects first-quarter sales in the range of $100 million to $103 million, a same-store sales decrease of 13% to 15% and a loss per share in the range of 10 cents to 13 cents. Analysts were looking for sales of $111.1 million, a same-store sales decline of 5%, and EPS of 14 cents.
“In 2018, we believe that we will return to ‘surprising and delighting' our guests with our improved merchandising assortment and boutique experience,” said Steve Lawrence, president and CEO, Francesca’s Holdings. “We expect that as our initiatives begin to take hold and we start to fully leverage the investments we made last year, we will see sequential quarter to quarter comparable sales improvement through the year.”