Francesca's Q2 Earnings Meet Expectations

by Monica Gerson, Benzinga Staff Writer
September 9, 2015 8:29 AM | 2 min read |
Francesca's Holdings Corp FRAN reported in-line earnings for its fiscal second quarter on Wednesday. The Houston, Texas-based company posted quarterly net income of $9.3 million, or $0.22 per share, compared to $10.3 million, or $0.24 per share, in the year-earlier period. Its revenue rose 9 percent year-over-year to $106 million from $97.3 million. Analysts were projecting a profit of $0.22 per share on revenue of $105.66 million. The average estimate among 5 Estimize users was for earnings of $0.21 per share and revenue of $104.96 million. Its comparable sales slipped 4 percent for the quarter. Gross profit, as a percentage of net sales, expanded to 47.4 percent versus 46.6 percent. Income from operations slipped to $15.2 million from $16.7 million. The company opened 69 boutiques year-to-date. At the end of the quarter, the company had $48.8 million in total cash and cash equivalents, versus $24.9 million at the end of the year-ago quarter. Michael W. Barnes, Chairman, President, and CEO stated, "We are pleased to announce this morning that we met our expectations for second quarter sales and earnings, which, reflect in-line results across merchandise categories, strong new boutique performance and healthy gross margin expansion. Inventory per boutique at the end of the quarter was down four percent to last year's second quarter. We are very pleased with the results for the back-to-school period through Labor Day. Our customers continue to respond favorably to our fall merchandise assortment and we are seeing significant improvement in our apparel and accessories offerings." For the current quarter, Francesca's projects revenue of $98 million to $101 million, versus analysts' estimates of $98.06 million. The company projects earnings of $0.12 to $0.15 per share, versus expectations of $0.18 per share. Francesca's expects full-year earnings of $0.83 to $0.88 per share, and revenue of $416 million to $424 million. Francesca's shares fell 1.41 percent to close at $12.63 yesterday.
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