Francesca's Holdings (Nasdaq: FRAN) Raises Fourth Quarter Guidance on Strong Holiday Sales and Margin

Orlando, FL 1/10/12 (StreetBeat) – Francesca's Holdings Corporation (Nasdaq:FRAN) today announced that the Company has raised its fourth quarter guidance based on its strong holiday period sales and margin performance.

Francesca's Holdings announced net sales for the two-month period ended December 31, 2011 increased 52.7% to $49.2 million compared to $32.2 million for the same period of 2010. Comparable boutique sales increased 14.1% for the two-month period of 2011 following a comparable boutique sales increase of 15.6% in the same period of 2010. Based on the results to date, the Company now expects net sales for the fourth quarter in the range of $58.5 to $59.5 million assuming a comparable boutique sales increase of 9% to 11% following a 14.5% increase in the same period last year. The Company now expects net income for the quarter to be in the range of $7.1 million to $7.6 million or $0.16 to $0.17 per diluted share compared to $0.11 per share in the fourth quarter of the prior year. Previously released guidance for the fourth quarter included estimated net sales of $55.5 to $57.0 million and diluted earnings per share of $0.14 to $0.15, based on an estimated comparable boutique sales increase of 4% to 5%.

John De Meritt, President and CEO stated: "We are very pleased with our strong sales and margin results for the holiday season, which we believe is a reflection of our effective merchandising strategy, strong value proposition and differentiated boutique shopping experience. We achieved this sales growth without sacrificing our merchandise margin. We believe our inventory remains at an appropriate level as we move into 2012. In addition, our new boutiques are performing in line with our expectations as we continue to execute successfully on our real estate strategy."

As previously announced, presenting at the ICR XChange Conference in Miami at the Fountainbleau Hotel are John De Meritt, co-founder and CEO, Theresa Backes, COO and Gene Morphis, CFO. The presentation, at 10:40 EST on Wednesday Jan. 11th, will be webcast at www.francescas.com The Company plans to announce its final fourth quarter and fiscal year 2011 financial results on March 13, 2012.

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