Francesca's Holdings Q4 Profit Declines; IssuesQ1, FY14 Outlook

(RTTNews) - Apparel retailer Francesca's Holdings Corp. (FRAN) posted fourth-quarter net income of $10.6 million or $0.25 per share, compared to $14.9 million, or $0.33 per share in the comparable quarter last year.

Adjusted net income for the latest fourth quarter was $11.4 million or $0.27 per share. On average, 19 analysts polled by Thomson Reuters expected earnings per share of $0.28 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter rose to $92.14 million from $86.70 million, driven by 91 new boutique openings since the prior year quarter. Analysts estimated revenues of $94.33 million for the quarter.

Comparable sales, which includes direct-to-consumer sales, decreased 6%, as compared to a 10% increase in the prior year quarter. The decrease in comparable sales was driven by a decrease in transactions partially offset by an increase in direct-to-consumer sales of 92% versus the prior year quarter.

Looking ahead to the first quarter, the company expects earnings to be in the range of $0.20 to $0.24 per share. Net sales are expected to be between $85 million and $90 million assuming a high to low single digit decrease in comparable sales, which includes our direct-to-consumer business.

Analysts currently expect first quarter earnings of $0.28 per share on revenue of $92.05 million.

For the full year ending January 31, 2015, the company expects earnings to be in the range of $1.16 to $1.31 per share. Net sales are expected to be in the range of $391 million to $409 million assuming a low single digit decrease to a low single digit increase in comparable sales, including the direct-to-consumer business.

Analysts currently expect full year earnings of $1.26 per share on revenue of $405.33 million.