Home / Knowledge / News / Apparel/Garments / Francesca's Q4'FY14 comparable sales drop 6%
Francesca's Q4'FY14 comparable sales drop 6%
Mar '14
Francesca's Holdings Corporation announced fourth quarter and full year 2013 financial results.
These results cover the 13 and 52 week periods ended February 1, 2014 along with comparisons to the 14 and 53 week periods ended February 2, 2013.
Fourth quarter net sales increased 6% to $92.1 million
Fourth quarter comparable sales decreased 6%
Fourth quarter adjusted diluted earnings per share were $0.27
Net sales for the thirteen weeks ending February 1, 2014 were $92.1 million. Net sales for the fourteen weeks ending February 2, 2013 were $86.7 million, including approximately $3.9 million related to the fourteenth week in last year's fourth quarter. The increase in fourth quarter sales was driven by 91 new boutique openings since the prior year quarter.
Comparable sales, which includes direct-to-consumer sales, decreased 6%, as compared to a 10% increase in the prior year quarter. The decrease in comparable sales was driven by a decrease in transactions partially offset by an increase in direct-to-consumer sales of 92% versus the prior year quarter.
Five new boutiques were opened during the fourth quarter bringing new openings for the year to 91 and ending total boutique count to 451 at quarter end.
Gross profit, as a percentage of net sales, decreased to 50.6% compared to 53.4% in the prior year quarter. This decrease was due to 180 basis points of deleveraging of fixed occupancy costs and 100 basis points of lower merchandise margin. The decrease in merchandise margins was due to elevated markdowns and promotions compared to the prior year quarter.
Adjusted selling, general and administrative expenses, which excludes $1.3 million in charges related to severance and litigation, increased 28% to $27.7 million from $21.6 million of selling, general and administrative expenses in the prior year quarter.
This increase was primarily due to higher payroll expenses and infrastructure investments to support the larger boutique base and direct-to-consumer sales growth. The prior year quarter did not include any adjusted items.
Adjusted income from operations, which excludes $1.3 million in charges related to severance and litigation, was $18.9 million or 20.5% of net sales compared to income from operations of $24.7 million or 28.5% of net sales in the prior year quarter.
Net income was $10.6 million or $0.25 diluted earnings per share for the fourth quarter of 2013, compared to net income of $14.9 million or $0.33 diluted earnings per share for the fourth quarter of 2012, with 2012's 53rd week contributing approximately $0.03 diluted earnings per share. Adjusted net income for the fourth quarter of 2013 was $11.4 million, or $0.27 adjusted diluted earnings per share, which excludes severance and litigation expenses of $1.3 million pretax ($0.8 million net of tax), or $0.02 diluted earnings per share.
Click here to view full results.

Francesca's Holdings

Must ReadView All

Textiles | On 24th Oct 2016

Indian govt plans roadshows to promote textile exports

The Indian government has planned to conduct roadshows to boost the...

Textiles | On 24th Oct 2016

TPP may hit roadblock

The 12-member Trans-Pacific Partnership (TPP) that was signed earlier ...

Textiles | On 24th Oct 2016

Baba Ramdev’s Patanjali to enter textile manufacturing

Patanjali Ayurved, an enterprise initiated by yoga guru Baba Ramdev,...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search