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Specialty retailer $FRAN said Steven Lawrence, most recently Chief Merchandising Officer for $SSI, will be President and CEO, effective Oct. 2016. Lawrence is also appointed to the company's BoD. Richard Kunes who has been Interim Chairman, President and CEO will become Company's Chairman of the Board.
$FRAN said it expects net sales for 4Q17 in the range of $137- 139MM, assuming a 15-17% decrease in comparable sales. This compares to previous guidance of net sales in the range of $145-150MM, assuming a 9-12% fall in comp sales. 4Q17 diluted EPS is expected in the range of $0.18 to 0.23 compared to the previous guidance range of $0.35 to $0.40.
For FY17, $FRAN expects net sales to be $478-483MM, assuming a decrease of 9-10% in comparable sales. The company expects to open 60 boutiques and close eight boutiques in FY17. Diluted EPS is expected to be $0.67-0.72. CapEx is expected to be $30-33MM.
$FRAN plans to contain its back-to-school assortment issues in 3Q17 and sell these goods in the natural selling season, vs waiting until the end of the year and marking these goods out of stock, which was the prior practice. As a result, the company expects inventory at the end of 3Q17 to be down in the high single-digits for boutique.
For FY17, $FRAN anticipates net sales in the range of $481-491MM; assuming a high-single digit decrease in comparable sales vs the prior year increase of 2%. Diluted EPS is expected in the range of $0.71-0.81 compared to the prior year of $1.09. $FRAN expects to open 60-65 boutiques and close 8-10 boutiques during this period.
For 3Q17, $FRAN expects net sales to be in the range of $105-109MM; assuming a comparable sales decrease in the mid-to high-teens compared to a 7% increase in the prior year. Diluted EPS is expected to be in the range of $0.00-0.05, including impact of Hurricane Harvey. $FRAN plans to open 32 boutiques and close one during the third quarter.
Specialty retailer $FRAN said its net sales improved 4% to $119.7MM in 2Q17. The company added that comparable sales for the quarter slid 3%, "primarily reflective of merchandising missteps." Net income fell to $7.26MM, or $0.20 per share, compared to $10.59MM, or $0.27 per share in the same quarter last year.
For FY17, $FRAN expects total GM to increase slightly compared to last year, driven by higher merchandise margins. SG&A for FY17 is expected to increase in the mid-teens YoY, which is driven by the prior inclusion of a $2MM or $0.03 EPS net benefit, higher boutique payroll and selling cost, and cost related to system investment and implementation.
$FRAN expects 2Q17 total GM rate to decline, mainly due to lower merchandise margin, which is expected to decrease approx. 130 BP. In 2Q17, the company will anniversary the beginning of its inventory management initiative and consequently expects inventory per boutique to be about flat compared to 2Q16.
$FRAN expects its 2Q17 EPS to be in the range of $0.13 to $0.18. The company intends to open around 18 new boutiques and close six existing ones during the quarter. In the whole of 2017, it expects to open 60-65 boutiques and close 10-15 boutiques.
$FRAN expects its 2Q17 sales to be in the $120-$124MM range, assuming a 3% decrease to a 1% rise in comparable sales. Full year sales are expected to be between $518MM and $537MM, assuming 2% decrease to a 2% increase in comp sales. The company revised down its 2017 EPS guidance to the range of $1.07-1.17 from the prior guidance of $1.11-1.21.
$FRAN reported a decline in 1Q17 profit to $4.33MM or $0.12 per share from $7.08MM or $0.18 per share last year. Net sales rose by 1% to $107.7MM, helped by the addition of 42 new boutiques. Comparable sales dropped 5%, owing to lower boutique traffic and conversion rates. The company opened 12 new boutiques and closed 4 in 1Q17.
Total merchandise sales for $FRAN improved 9% in 4Q16 to $145.4MM, driven by a 14% rise in apparel category to $60.7MM and a 15% hike in jewelry sales to $34.1MM. Accessories sales inched 2% up to $24.9MM, while gifts saw a 3% dip in sales to $25.8MM.
$FRAN sees FY17 net sales at $527-543MM, assuming a flat to a low-single-digit increase in comparable sales. The clothing chain plans to open 60-65 boutiques and close 10-15 boutiques in FY17. Diluted EPS is expected to be $1.11-1.21, with a capital expenditures guidance of $28-33MM.
For 1Q17, $FRAN expects net sales to be $111-114MM, with a low single-digit decrease to flat comparable sales. The apparel chain plans to open about 15 new boutiques and close another four during 1Q17, with diluted EPS is forecast at $0.12-0.16.