More on Francesca's Q1

• Francesca's (NASDAQ:NASDAQ:FRAN) reports comparable-store sales rose 2% in Q1 driven by an increase in the number of transactions both at the boutiques and on-line.
• Ecommerce comparable sales increased 38% for the period.
• Merchandise category sales: Apparel: $54.89M (+14%); Jewelry: $24.06M (+10%); Accessories: $16.05M (+4%); Gifts and home: $11.33M (+15%).
• Gross margin rate decreased 100 bps to 46.3%.
• SG&A expense rate expanded 80 bps to 35.5%.
• Operating margin rate dropped 170 bps to 10.8%.
• Inventory +10.8% Y/Y to $34.8M.
• Boutique count +30 Q/Q to 646.
• Q2 Guidance: Net sales: $106M to $110M; Comparable-store sales: mid-single digit decrease; EPS: $0.16 to $0.19; New boutiques: 15 to 20.
• FY2016 Guidance: Net sales: $460M to $480M; Comparable-store sales: flat to a low-single digit decrease; EPS: $0.86 to $0.96; Shares outstanding: 39.6M; Tax rate: 37.8%; Capital expenditure: $28M to $31M; New boutiques: 50 to 60.