Francesca’s shares sink after same-store sales slump
Francesca’s Holdings Corp. shares sank 5.8% in Tuesday premarket trading after it reported a 15% fourth-quarter same-store sales decline and gave weak guidance. Net income totaled $3.7 million, or 10 cents per share, down from $14.6 million, or 39 cents per share, for the same period last year. Adjusted EPS was 20 cents. Revenue totaled $138.5 million, down from $146.3 million last year. Same-store sales dropped 15% for the quarter, which the company blamed on traffic declines and the merchandise’s failure to resonate with customers. The FactSet consensus was for EPS of 19 cents, sales of $138.0 million, and a same-store sales decline of 5.5%. The apparel and accessories retailer expects first-quarter sales in the range of $100 million to $103 million, a same-store sales decrease of 13% to 15% and a loss per share in the range of 10 cents to 13 cents. The FactSet consensus is for sales of $111.1 million, a same-store sales decline of 5%, and EPS of 14 cents. Francesca’s shares are down nearly 70% for the past year while the S&P 500 index is up 13.5% for the period.