francesca’s® Provides Fourth Quarter Fiscal Year 2017 Update and Introduces Fiscal Year 2018 Estimated Tax Rate and Boutique Net Openings
- Reaffirms fourth quarter 2017 sales
- Updates diluted earnings per share to reflect tax legislation impact
As noted in the
Fiscal year 2017 GAAP diluted earnings per share is expected to be in the range of
For fiscal 2018, the Company expects the effective tax rate to decrease to approximately 26% based on the new tax legislation.
The Company’s priorities in fiscal 2018 are to drive improved comparable sales performance through improved merchandising, while continuing to make strategic investments for the future that will drive long term sustainable growth and shareholder value. While new boutiques produce favorable financial returns, the Company believes it is prudent to moderate boutique openings in 2018 as it focuses on improving merchandising and investing in existing boutiques and infrastructure. The Company expects to open approximately 35 new boutiques in high traffic locations while also refreshing approximately 80 to 90 high volume existing boutiques. Additionally, the Company has increased performance expectations of existing boutiques and, as a result, will close approximately 20 boutiques.
The Company will remain vigilant on expenses and capital management to ensure it continues to invest in future growth. The Company plans to continue to allocate cash within its stated capital allocation framework. The priorities for excess cash are boutique and ecommerce investments, infrastructure investments and share repurchases.
Earnings Conference Call
francesca’s® plans to release fiscal fourth quarter 2017 financial results on
Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements reflect our current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected. These risks and uncertainties include, but are not limited to, the following: the risk that we cannot anticipate, identify and respond quickly to changing fashion trends and customer preferences or changes in consumer environment, including changing expectations of service and experience in boutiques and online, and evolve our business model; our ability to attract a sufficient number of customers to our boutiques or sell sufficient quantities of our merchandise through our ecommerce business; our ability to successfully open and operate new boutiques each year and our ability to efficiently source and distribute additional merchandise quantities necessary to support our growth; new developments such as tax legislation that may influence the effective tax rate and financial outlook. For additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to "Risk Factors" in our Annual Report on Form 10-K for the year ended
The Company may not issue future press releases discussing guidance or financial results such as this one other than associated with routine quarterly and annual financial reporting.
The Company's announced preliminary results for its fourth quarter and fiscal year ended February 3, 2018 are preliminary and may change. The Company and its auditors have not completed their normal closing and audit procedures for the quarter and fiscal year ended February 3, 2018. There can be no assurance that final results for the quarter and full year will not differ from the preliminary results, including as a result of closing procedures or audit adjustments. In addition, these preliminary results should not be viewed as a substitute for full financial statements prepared in accordance with GAAP that have been audited by the Company's auditors.
SEC Regulation G – Non-GAAP Information
This press release included non-GAAP adjusted earnings per share, a non-GAAP financial measure. The Company believes this non-GAAP financial measure not only provides our management with comparable financial data for internal financial analysis but also provides meaningful supplemental information to investors. Specifically, this non-GAAP financial measure allows investors to better understand the performance of the business and facilitates a meaningful evaluation of our quarterly and fiscal year 2017 diluted earnings per share on a comparable basis with our quarterly and fiscal year 2016 results. This non-GAAP measure should be considered a supplement to, and not as a substitute for or superior to, financial measures calculated in accordance with GAAP.
francesca's® is a growing specialty retailer which operates a nationwide-chain of boutiques providing customers a unique, fun and personalized shopping experience. The merchandise assortment is a diverse and balanced mix of apparel, jewelry, accessories and gifts. Today, francesca's® operates approximately 721 boutiques in 47 states and the
Source: Francesca's Holdings Corporation