Sales zoom at Francesca's Holdings in Q1 FY'12

Balance Sheet highlights as of April 28, 2012:

Cash and cash equivalents totaled $8.2 million.

Inventory was $17.9 million on a boutique base of 327 compared to $13.5 million on a boutque base of 249 for the comparable prior period. Sales growth of 48.6% exceeded inventory growth of 32.5%, reflecting effective inventory management.  

Borrowings decreased $10.0 million in the first quarter to $12.0 million as the Company used a portion of its cash flow to reduce its borrowing under its revolving credit facility. Subsequent to the end of the quarter, borrowing was reduced an additional $3.0 million to $9.0 million. At April 28, 2012, $53.0 million was available under our revolving credit facility for future borrowings.

Second Quarter and Fiscal 2012 Outlook

For the second quarter ending July 28, 2012, net sales are expected to be between $69.0 million and $71.0 million, assuming a low-double-digit comparable boutique sales increase and the opening of 29 new boutiques. Earnings per diluted share are expected to be in the range of $0.22 to $0.23, an increase of 69% to 77% over the same prior year period earnings per diluted share of $0.13 per share.

Excluding the $1.6 million of non-recurring charges during the second quarter of fiscal year 2011, adjusted diluted earnings per share was $0.15 per share compared to expect diluted earnings per share in the range of $0.22 to $0.23 per share, an increase of 47% - 53% over the prior year. The number of diluted weighted average shares outstanding is expected to be 44.8 million.

For the full fiscal year ending February 2, 2013, net sales are expected to be in the range of $280.0 million to $283.0 million, assuming a high-single-digit comparable boutique sales increase and the opening of 75 new boutiques and an outlet boutique.

Earnings per diluted share are expected to be in the range of $0.87 to $0.89, an increase of 67% to 71% over the same prior year period earnings per diluted share of $0.52 per share. Excluding $1.1 million of non-recurring charges during fiscal year 2012 and $4.5 million of non-recurring charges during fiscal year 2011, adjusted diluted earnings per share are expected to be in the range of $0.89 to $0.91 per share, an increase of 53% to 57% over the adjusted diluted earnings per share of $0.58 per share for fiscal year 2011.

Francesca's Collections is a growing specialty retailer with retail locations designed and merchandised to feel like independently owned, upscale boutiques providing customers a fun and differentiated shopping experience.

Francesca's Holdings Corporation