Francesca's shares sink after profit warning, says corporate headquarters and more impacted by Harvey

Francesca's Holdings Corp. issued a profit warning on Wednesday, saying its corporate headquarters, about 40 stores, an e-commerce fulfillment center, distribution center and many team members were impacted by Hurricane Harvey. Shares were halted in premarket trading, then sank 14.2%. As of Tuesday, September 5, Francesca's corporate facilities and all but one store has reopened, according to a statement from Chief Executive Steve Lawrence, however, the company expects that it will take a couple of weeks for its supply chain to return to normal. The retailer reported second-quarter net income of $7.26 million, or 20 cents per share, down from $10.6 million, or 27 cents per share, for the same period last year. The FactSet consensus is 19 cents. Revenue totaled $119.7 million, up from $115.3 million last year and ahead of the $119.0 million FactSet consensus. The company attributed its revenue gain to the addition of 40 boutiques. Same-store sales fell 3%. Francesca's expects third-quarter sales in the range of $105.0 million and $109.0 million, and EPS in the range of breakeven to 5 cents. The Factset consensus is for sales of $122.4 million and EPS of 22 cents. Same-store sales are expected to decline in the mid-to-high teens. For the fiscal year, the retailer expects sales in the range of $481.0 million to $491.0 million, with a high-single digit decrease in same-store sales. EPS is expected to be in the range of 71 cents to 81 cents. The FactSet consensus is for sales of $511.5 million and EPS of 99 cents. Francesca's shares are down 59.6% for the year so far while the S&P 500 index is up 9.8% for the period.

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