Francesca Q1 Profit Down, But Revenues Rise - Quick Facts

(RTTNews) - Francesca's Holdings Corp. (FRAN) Tuesday posted lower earnings for the first quarter, reflecting higher selling, general and administrative expenses.

The company's net income was down to $8.6 million or $0.20 per share from $10.9 million or $0.24 per share last year. On average, 19 analysts polled by Thomson Reuters expected earnings per share of $0.22 for the quarter. Analysts' estimates typically exclude one-time items.

Selling, general and administrative expenses increased 19 percent to $27.8 million from $23.4 million in the prior year quarter. This increase was primarily due to higher boutique and corporate payroll expenses to support the larger boutique base and direct-to-consumer sales growth.

Net sales for the quarter rose to $85.4 million from $79.0 million last year. This was driven by 62 new boutiques opened during the quarter, bringing the total boutique count to 513 at quarter end. Analysts estimated revenues of $88.09 million for the quarter.

Looking ahead, the firm projects second-quarter earnings per share to be in the range of $0.24 - $0.29 and net sales between $98 million and $103 million. Analysts expect earnings per share of $0.36 on revenues of $103.93 million.

For the full year ending January 31, 2015, the company expects earnings per share in the range of $1.05 - $1.17 and net sales between $387 million and $399 million. Analysts estimate earnings per share of $1.21 on revenues of $397.91 million.