Francesca’s Q2 income and sales fall short; lowers full-year outlook

Houston -- Francesca's Holdings Corp. on Tuesday reported second quarter net income of $10.3 million, down from $14.6 million in the year-earlier period. Earnings and sales both fell short of estimates. The retailer also lowered its earnings outlook for the year.



Net sales rose 9% to $97.3 million, driven largely by new openings. Total apparel sales increased 14%, accessories sales increased 14%, and gift sales increased 25%. The gains were offset by a 12% decrease in jewelry sales,



Same-store sales fell 7%.



"We expect the improving sales trend that started at the end of the second quarter to continue through the third quarter as jewelry sales continue to strengthen, and our customers increasingly respond to our seasonal gift and apparel assortments," Neill P. Davis, CEO, stated. “Our balance sheet remains strong giving us the ability to continue to open new boutiques which are meeting our expectations of paybacks under one year while investing in the infrastructure to support our growth. Our business model remains strong and we have a significant opportunity to continue to drive improvements in sales and profits.”