Francesca’s raises outlook after strong Q2

Francesca’s Holdings Corp. posted better-than-expected sales and earnings for its second quarter, helped in part by higher online sales.



The retailer reported a profit of $10.6 million, or 27 cents a share, compared with a profit of $9.3 million, or 22 cents a share, in the year-ago period.



Sales increased 9% to $115.3 million, helped by a net gain of 44 stores over the year-ago period. Online sales rose 37%.



Same-store sales were flat, with a drop in transaction value offsetting an increase in the number of transactions.



Francesca’s ended the quarter with 652 stores. It expects to open between 55 and 65 locations this year.



“As we enter the third quarter, we are pleased with initial results as we successfully executed our targeted back-to-school programs,” said Richard Kunes, interim chairman, president and CEO, Francesca’s, which operated 652 stores at the end of the quarter. “Looking ahead, we are encouraged by our trend-right merchandise assortment, e-commerce growth and favorable inventory position. With all of our strategic initiatives beginning to align, we believe we are on the path to deliver long-term, sustainable growth and profitability.”



The company said it was increasing its full year diluted earnings per share guidance to $0.96 to $1.03. For the full fiscal year, Francesca’s now sees sales of $473 million to $488 million, which is lower its forecast from March but better than its June warning of sales between $460 million and $480 million.