Francesca Holdings Q1 Revenue Disappoints, Shares Tumble (FRAN)

Women apparel and accessories retailer, Francesca Holdings Corp (NASDAQ: FRAN) reported late on Wednesday that fiscal first quarter income climbed 25%, aided by double digit sales growth; nonetheless, shares tumbled in extended trading hours as analysts were expecting higher sales.

The Houston, Texas-based retailer, which went public in July 2011, has been consistently posting double-digit quarterly sales growth.

For the fiscal first quarter ended May 4, Francesca Holdings reported a net income of $10.9 million or 24 cents a share compared to a profit of $8.7 million or 20 cents a share, in the same quarter of last year. Adjusting onetime items, non-GAAP earnings climbed to 26 cents a share from 21 cents a share, in the year-earlier quarter.

Revenue rose 29% to $79 million while comparable-store-sales increased by 2%.

Earlier in March the Company projected earnings of 25 to 26 cents a share on revenue of $79.5 million to $80.5 million. At that moment, Comparable-store-sales were projected to grow by 4% to 5%.

Analysts polled by Thomson Reuters had forecasted for earnings of 26 cents a share on revenue of $79.6 million.

Sales trend was particularly strong in jewelry and accessories division. Gross margin shrank to 52.4% from 53.1%.

For the current quarter, Francesca Holdings is expecting earnings of 35 cents to 36 cents a share on sales of $94.5 million to $95.5 million. Analysts’ consensus forecast was for earnings of 35 cents a share on sales of $95 million. The Company reaffirmed its full-year guidance.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.