Adjusted diluted earnings per share increased 24% to $0.26
HOUSTON, June 5, 2013 (GLOBE NEWSWIRE) -- Francesca's Holdings Corporation (Nasdaq:FRAN) today reported net income for the first quarter of 2013 of $10.9 million or $0.24 per diluted share, compared to net income for the first quarter of 2012 of $8.7 million, or $0.20 per diluted share. Adjusted net income for the first quarter of 2013 was $11.5 million, or $0.26 per diluted share, excluding $0.6 million net of tax charges related to a secondary equity offering, compared to adjusted net income for the first quarter of 2012 of $9.2M, or $0.21, excluding $0.5 million net of tax charges related to a secondary equity offering. Neill Davis, Chief Executive Officer, commented, "We delivered on our earnings expectations as well as several strategic goals in the first quarter. We opened 56 new boutiques increasing our market presence to 416 boutiques, achieved record direct-to-consumer sales now representing 2.1% of total Company sales for the quarter, and successfully completed the rollout of our new point-of-sale system in our boutiques. Our continued execution on key growth initiatives combined with our differentiated business model and unique brand experience position us well for long term growth." FIRST QUARTER SUMMARY Net sales for the thirteen weeks increased 29% to $79.0 million driven by 56 new boutique openings in the first quarter. Sales growth rates were strongest in jewelry and accessories, outpacing increases in clothing and gifts. Comparable sales, including direct-to-consumer sales, increased 2% on top of a 16% increase in the prior year quarter. Direct-to-consumer achieved record sales with a 97% increase over the prior year quarter driven by increases in traffic, conversion rates, and average transaction values. Comparable sales, excluding direct-to-consumer sales, were flat to the prior year quarter and below the Company's expectations of an increase in the range of 4% to 5%. The decrease was driven by lower than expected transactions as a reflection of the unseasonable weather conditions that persisted throughout the quarter.