Home / Knowledge / News / Apparel/Garments / Francesca's Q4'FY14 comparable sales drop 6%
Francesca's Q4'FY14 comparable sales drop 6%
27
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.
 
Highlights: 
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
 
FOURTH QUARTER RESULTS
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 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Urs Stalder
Sanitized AG

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X