Francesca's Holdings Corporation announced that the Company has reaffirmed sales guidance and updated EPS guidance for the fourth quarter ending February 3, 2018. The Company now expects fourth quarter 2017 net sales of $138.5 million and a comparable sales decline of 15%, both at the high end of guidance. The guidance ranges, noted in the Company's January 4, 2018 press release, were net sales of $137 million to $139 million with a comparable sales decline of 15% to 17%. As noted in the January 4, 2018 press release, the Tax Cuts and Jobs Act prompted a non-cash write-down of the Company's deferred tax asset in the fourth quarter 2017. This is anticipated to increase tax expense by approximately $3 million to $4 million, or approximately $0.08 to $0.11 per diluted share. As a result, fourth quarter 2017 GAAP diluted earnings per share is expected to be in the range of $0.07 to $0.11. Excluding the write-down of the deferred tax asset and related tax expense increase, adjusted diluted earnings per share is now estimated to be $0.18 to $0.19. This is at the low end of the prior guidance of $0.18 to $0.23 as the Company continued to take actions to address slow-selling merchandise.

Fiscal year 2017 GAAP diluted earnings per share is expected to be in the range of $0.39 to $0.43. Excluding the write-down of the deferred tax asset and related tax expense increase, adjusted diluted earnings per share is now estimated to be $0.50 to $0.51. This compares with prior adjusted earnings per share guidance of $0.50
to $0.55.

For fiscal 2019, the Company expects the effective tax rate to decrease to approximately 26% based on the new tax legislation.

The Company expects to open approximately 35 new boutiques in high traffic locations while also refreshing approximately 80 to 90 high volume existing boutiques.

Additionally, the Company has increased performance expectations of existing boutiques and, as a result, will close approximately 20 boutiques.