Home / Knowledge / News / Apparel/Garments / Francesca's Q1'FY14 net sales lift 8% to $85.4mn
Francesca's Q1'FY14 net sales lift 8% to $85.4mn
10
Jun '14
Francesca's Holdings Corporation reported net income of $8.6 million or $0.20 diluted earnings per share for the first quarter of 2014, compared to net income of $10.9 million or $0.24 diluted earnings per share for the first quarter of 2013.
 
Highlights: 
-First quarter net sales increased 8% to $85.4 million
-First quarter comparable sales decreased 7%
-First quarter diluted earnings per share were $0.20
-Opened a record 62 new boutiques during the quarter
 
First Quarter Results
Net sales for the thirteen weeks were $85.4 million, compared to net sales of $79.0 million in the prior year quarter. The increase in first quarter sales was driven by 62 new boutiques opened during the quarter; bringing the total boutique count to 513 at quarter end.
 
Total apparel merchandise sales increased by 12% with increases in fashion tops and separates offsetting weakness in the dress category. Total non-apparel merchandise sales increased 5% with notable weakness in jewelry offset by increases in accessories and gift.
 
Our boutique sales were impacted by severe winter weather conditions during February causing over 360 full and partial day boutique closings throughout a large number of Southern, Northeast, and Central geographic regions, particularly in the Gulf Coast, Mid-Atlantic, Northeast, and New England areas. We estimate the impact of February closures to be approximately 200 bps of comparable sales during the quarter. Comparable sales, which include direct-to-consumer sales, decreased 7% versus the prior year quarter. The decrease in comparable sales was driven by a 7% decrease in transactions partially offset by an increase in direct-to-consumer sales of 84% versus the prior year quarter.
 
Gross profit, as a percentage of net sales, decreased to 49.0% compared to 52.4% in the prior year quarter. This decrease was due to 160 basis points of deleveraging of fixed occupancy costs and 180 basis points of lower merchandise margin. The decrease in merchandise margins was primarily due to elevated levels of markdowns and clearance sales compared to the prior year quarter.
 
Selling, general and administrative expenses increased 19% to $27.8 million from $23.4 million in the prior year quarter. This increase was primarily due to higher boutique and corporate payroll expenses to support the larger boutique base and direct-to-consumer sales growth.
 
Income from operations was $14.0 million or 16.4% of net sales compared to income from operations of $18.0 million or 22.8% of net sales in the prior year quarter.
 
Click here to view full results.
 

Francesca's Holdings

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Steve Cole
Xerium Technologies

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella 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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search