FRAN Francescas Holdings Corporation

Boutique retailer Francesca's Holdings Corp. reported better-than-expected results in the fourth quarter, as an increase in sales amid a favorable holiday shopping season helped offset rising expenses.

However, the company on Wednesday issued guidance for the first quarter and its fiscal year, projecting profit that was generally lackluster compared with Wall Street views.

The Houston company also said Wednesday that it named Kelly M. Dilts as chief financial officer. Ms. Dilts will assume her position in April and report to Chairman and Chief Executive Mike Barnes.

Shares, up 6.9% through Tuesday's close, fell 3.1% to $16.80 in premarket trading.

For the first quarter, Francesca's anticipates sales between $108 million to $112 million. Analysts were projecting $108 million, according to Thomson Reuters. The company expects per-share earnings in a range of 17 cents to 20 cents. Analysts had projected 21 cents.

For the period ended Jan. 30, Francesca's posted a profit of $14.7 million, or 35 cents a share, up from $6 million, or 14 cents a share, a year earlier. Excluding items, the company earned 36 cents a share. The company had guided for earnings between 32 cents and 34 cents.

Sales increased 25% to $134.6 million. Analysts had expected $132 million.

Selling, general and administrative expenses climbed 9% from a year ago to $42 million.

In January, Barnes credited customer response in the fourth quarter to holiday merchandise and improved inventory management offerings for a good holiday performance. The chain targets 8-to-35-year-old female customers and designs locations to look and feel like independently owned boutiques.

Francesca's estimated full-year sales between $474 million and $494 million in 2016 as analysts were expecting $488.5 million. The company sees per-share earnings in the range of 93 cents to $1.03; analysts projected $1.03 a share.

The company expects to open 50 to 60 new boutiques and close five to 10 that are underperforming in 2016. The company had 616 boutiques at the end of the fourth quarter.

Ms. Dilts, the incoming CFO, currently serves as the senior vice president of finance and investor relations at Tailored Brands Inc., formerly Men's Wearhouse, Inc. She joined Tailored Brands in 1998 as assistant controller and served as its chief accounting officer, among other roles.

Francesca's previous chief financial officer, Mark Vendetti, resigned in December to become financial chief at Performance Sports Group Ltd.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

March 23, 2016 10:05 ET (14:05 GMT)

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