Francesca's Holdings Q3 Profit Falls, Cuts Full Year View - Quick Facts

(RTTNews) - Women's apparel retailer Francesca's Holdings Corp. (FRAN) said third-quarter net income fell to $7.3 million, or $0.17 per share, from $8.7 million, or $0.20 per share, for the third quarter of 2013.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales increased to $87.1 million from $79.6 million, driven by 92 new boutiques opened since the end of the third quarter last year. Comparable sales decreased 6 percent. Analysts expected revenues of $88.40 million.

For the fourth quarter, earnings per share are expected to be in the range of $0.13 to $0.19 excluding any charges related to the CEO transition implemented earlier this month. Net sales are expected to increase 4 to 11 percent and be in the range of $96 million and $102 million, which also assumes a 5 to 10 percent decrease in comparable sales.

According to the company, the updated fourth quarter guidance assumes the continuation of a challenging retail environment and aggressive promotional activity throughout the holiday season, in addition to the expectation that the apparel business will remain challenged.

Analysts expect earnings of $0.27 per share on revenues of $104.05 million.

For the full year ending January 31, 2015, earnings per share are now expected to be in the range of $0.75 to $0.81 excluding any charges related to the CEO transition.

Fiscal year net sales are now expected to increase 8 to 9 percent and be in the range of $366 million and $372 million, which also assumes a 6 to 8 percent decrease in comparable sales compared to a prior year comparable sales decrease of 2 percent.

The previous forecast was for annual earnings of $0.88 to $0.98 per share on sales of $373.0 million to $383.0 million, and comparable sales decrease in mid-to-low single digit.

Wall Street expects earnings of $0.89 per share on revenues of $374.18 million.