Retailer Francesca’s (FRAN) is cutting its full-year forecast after disappointing Q1 results that led to a stock hit.
FRAN stock is down 11% in morning trading.
The women’s apparel company saw a 21% drop in quarterly profits, due to a protracted rough winter and clearance sales to move product.
FRAN said earnings would be $1.05-$1.17 per share on revenue of $387-$399 million.
Previously earnings were forecast at $1.16-$1.31 per share on revenue of $391-$409 million.
Net income was $8.6 million (20 cents per share) for Q1, down from $10.9 million (24 cents per share).
Revenue was up at $85.4 million (an increase of 8%), though comparable sales fell 7%.
Wall Street, meanwhile, had expected profit oat 23 cents per share with revenue at $88.1 million.
“Our new boutiques continue to open strong and are meeting our expectations of payback periods of less than one year,” Chief Executive Neill P. Davis said in a statement. “Declining sales within our comparable boutiques partially offset these gains and were a reflection of decreases in boutique transactions, which has limited the effectiveness of our merchandise clearance strategies through existing channels.”
