Apparel retailer Francesca's Holdings Corp. (FRAN), Wednesday reported an increase in first-quarter profit, helped mainly by new store openings and improved demand for its clothing and jewelry products. Revenues for the quarter jumped 29 percent, but came in short of Wall Street estimates.
Moving forward, Francesca's detailed its outlook for the second quarter and reaffirmed its expectations for the full year 2013.
Shares of the company slid 10 percent in after-hours trade on the Nasdaq.
The Houston, Texas-based company posted quarterly net income of $11 million or $0.24 per share, up from $8.7 million or $0.20 per share last year.
Excluding items, adjusted earnings for the quarter were $11.5 million or $0.26 per share, compared with $9.2 million or $0.21 per share a year ago.
On average, 14 analysts polled by Thomson Reuters estimated earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter rose 29 percent to $79 million from $61 million last year. Analysts on consensus estimated sales of $79.56 million for the quarter.
Results were led by 56 new boutique openings in the quarter. Sales growth rates were strongest in jewelry and accessories, outpacing increases in clothing and gifts.
Comparable sales, including direct-to-consumer sales, increased 2 percent on top of a 16 percent rise in the prior year.
Gross margin for the quarter slid to 52.4 percent from 53.1 percent a year ago, hurt by lower merchandise margins amid an increase in promotions.
For the second quarter, the company expect earnings in the range of $0.35 to $0.36 per share on sales of $94.5 million to $95.5 million. Analysts currently estimate earnings of $0.35 per share on revenues of $94.84 million for the second quarter.
For the fiscal year ending February 2014, the company continues to expect earnings of $1.27 to $1.30 per share on sales of $365 million to $370 million. Analysts currently expect earnings of $1.30 per share on sales of $370.04 million.
Francesca's stock closed Wednesday at $30.09, up 1.86%, on a volume of 2.6 million shares. However, in after hours, the stock dropped $3.12 or 10.37%.
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