Shares in Francesca’s Holdings Corp (NASDAQ:FRAN) have fallen to an all-time low after the operator of retail boutiques posted Q1 earnings and revenue below expectations and guided for mostly lower-than-expected Q2 and full-year results, partly because of a plan to dispose of slow-moving inventory. 

Shares are down 12.3% at $13.40 near midday, earlier hitting a record low of $13.15. 

Net income fell to $8.6 million, or $0.20 per share from $10.9 million, or $0.24 per share a year ago and below the consensus for $0.22, according to analysts polled by Capital IQ. 

Total sales rose 8% to $85.4 million, below forecasts for $88.2 million. 

For the second quarter ending August 2, 2014, net sales are expected to be between $98 million and $103 million assuming a mid to low single digit decrease in comparable sales, below estimates for $104 million. 

EPS are expected to be in the range of $0.24 to $0.29. Second quarter guidance reflects the company’s plans to dispose of slow moving inventory at a pretax cost of between $2.5 million to $3.5 million, or $0.04 to $0.05 per diluted share. Analysts were looking for $0.36. 

For the full year, net sales are now expected to be in the range of $387 million to $399 and EPS is seen in a range of $1.05 to $1.17. Analysts expected revenue of $398 million with EPS of $1.21.