Francesca's Holdings Corp
) reported earnings of 26 cents per share for the
2013-first-quarter, in line with the Zacks Consensus Estimate.
Earnings of this specialty retailer, however, grew 23.8% year
over year on the back of double-digit top-line growth. It was
also at the higher end of management's expectation of 25 cents to
Francesca's reported net sales of $79.0 million, in line with
the Zacks Consensus Estimate. Net sales surged 29.0% year over
year, driven by solid improvement in comparable boutique sales
and the opening of 56 new stores. It was close to management's
expectation of $79.5 million to $80.5 million.
Jewelry and accessories boosted revenue growth during the
quarter. Comparable boutique sales rose 2.0% in the quarter.
Strong traffic, conversion rates and average transaction values
led to the solid rise in comparable store sales during the
Gross margin shrank 70 basis points (bps) to 52.4% due to
higher promotional spending resulting in lower merchandise
margins. Selling, general and administrative (SG&A) expenses
rose 31% to $22.8 million in the quarter. As a percentage of
revenues, SG&A expenses inflated 40 bps to 28.8% in the
Other Financial Updates
Francesca exited the first quarter of fiscal 2012 with cash
and cash equivalents of $33.8 million compared to $29.9 million
at the prior-quarter end. Total inventories held by the company
stood at $19.0 million compared to $23.3 million in the prior
Francesca's expects net sales in the range of $94.5 million and
$95.5 million in the second quarter of 2013 on the back of
expected comparable sales growth of 1% to 2% and estimated
openings of 21 new stores. Earnings per share are expected in the
range of 35 cents to 36 cents, up 21.0% to 24.0% from the
For fiscal 2013, the company expects net sales in the range of
$365.0 million to $370.0 million on the back of expected
comparable sales growth of 4% to 5%. Earnings per share are
expected in the range of $1.27 to $1.30, up 23.3% to 26.2% from
the prior-year quarter.
Francesca's currently carries a Zacks Rank #4 (Sell). Other
stocks in the consumer discretionary sector that are worth
Iconix Brand Group Inc.
) carrying a Zacks Rank #1 (Strong Buy) and
Brown Shoe Company Inc.
), both carrying a Zacks Rank #2 (Buy).
BROWN SHOE CO (BWS): Free Stock Analysis
CARTERS INC (CRI): Free Stock Analysis Report
FRANCESCAS HLDG (FRAN): Free Stock Analysis
ICONIX BRAND GP (ICON): Free Stock Analysis
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