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Francesca's Holdings lowers FY'17 guidance

Women's retail boutique operator Francesca's Holdings Corp. on Dec. 5 lowered its guidance for fiscal 2017 as it reported third-quarter earnings that missed analysts' consensus estimates.

Francesca's expects net sales for the fiscal year ending Feb. 3, 2018, to be in the range of $478 million to $483 million, lower than the previous range of $481 million to $491 million it gave Sept. 6 when releasing second-quarter figures. It forecasts diluted earnings per share to be in the range of 67 to 72 cents, lower than its prior guidance of 71 to 81 cents.

The company expects to see 60 store openings and eight store closures in the fiscal year, compared to 64 new boutiques and nine store closures in fiscal 2016.

For the third quarter ended Oct. 28, Francesca's net sales decreased 11% to $105.8 million from $119.5 million in the same period in 2016. The company said falling store traffic and sales conversion rates, coupled with the impact of Hurricanes Harvey and Irma, hurt its quarterly results. Growing its e-commerce business remains the "number one long-term focus" of the company, according to the release.

The company's third-quarter net income was $239,000, or 1 cent per share, lower than the mean consensus estimate of 4 cents by S&P Capital IQ. The company's net income in the same period a year ago was $9.7 million, or 26 cents per share.