Francesca's Holdings Corporation reported consolidated earnings results for the first quarter ended May 5, 2018. For the quarter, the company reported net sales of $100,405,000 compared to $107,689,000 a year ago. Loss from operations was $4,520,000 compared to profit of $7,402,000 a year ago. Loss before income tax expense was $4,487,000 compared to profit of $7,264,000 a year ago. Net loss was $3,885,000 or $0.11 per diluted share compared to profit of $4,333,000 or $0.12 per diluted share a year ago. Net cash provided by operating activities was $3,207,000 compared to $8,700,000 a year ago. Purchase of property and equipment was $8,725,000 compared to $4,634,000 a year ago.

For the second quarter ending August 4, 2018, net sales are expected to be in the range of $119 million to $122 million, assuming a 6% to 9% decrease in comparable sales compared to the prior year decrease of 3%. The company plans to open four new boutiques and close eight existing boutiques during the second quarter. Diluted earnings per share is expected to be in the range of $0.02 to $0.05. The tax rate is expected to be 24.2% and expected 34.8 million diluted share.

For the fiscal year ending February 2, 2019, net sales are expected to be in the range of $485 million to $499 million; assuming a low-single digit decrease in comparable sales compared to the prior year decrease of 11%. Diluted earnings per share are expected to be in the range of $0.53 to $0.63 compared to prior year diluted earnings per share of $0.43. This also compares to prior year adjusted diluted earnings per share of $0.52, which excludes the $3.3 million, or $0.09 per diluted share, charge related to the remeasurement of the company's deferred tax assets. Capital expenditures for fiscal year 2018 are still expected to be approximately $30 million.