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Francesca's lower on earnings miss

Published 12/05/2017, 08:07 AM
© Reuters.  Francesca's lower on earnings miss
  • Francesca's (NASDAQ:FRAN) reports comparable sales decreased 18% in Q3, primarily due to a decline in boutique traffic and conversion rates.
  • Merchandise category sales: Apparel: $54.66M (-15%); Jewelry: $22.83M (-13%); Accessories: $15.36M (-11%); Gifts: $10.92M (-6%).
  • Gross margin rate dropped 860 bps to 39.6%, due to a decrease in merchandise margin and deleveraging of occupancy costs.
  • SG&A expense rate grew 410 bps to 39.1%.
  • Operating margin rate squeezed 1280 bps to 0.4%.
  • Inventory -9.2% Y/Y to $38.82M.
  • Boutique count +45 Y/Y to 714.
  • Q4 Guidance: Net sales: $145M to $150M; Comparable sales: -9% to -12%; EPS: $0.35 to $0.40.
  • FY2017 Guidance: Net sales: $478M to $483M; Comparable-store -9% to -10%; EPS: $0.67 to $0.72; Shares outstanding: 36.3M; Tax rate: 38.7%; Capital expenditure: $30M to $33M; New boutiques: 60.
  • FRAN -7.69% premarket.
  • Now read: G-III Apparel raises FY2018 guidance


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