Francesca’s Holdings | $FRAN Stock | Shares Slide 34% On Downbeat Q2 Results

216
francesca's

Francesca’s Holdings Corp (FRAN: NASDAQ)

 

Francesca’s Holdings Corp stock fell $2.03, or 34.47% to close the regular session at $3.86 on Tuesday, after the specialty retailer revealed a drop in fiscal second-quarter income and revenues that decreased 6% from the prior-year period.

Francesca’s reported a decline in same-store sales during the quarter that was offset by a decrease in conversion rate and store traffic.

The Texas-based company also lowered its earnings and revenue outlook for the full year, causing the stock to shrink further in premarket trading on Wednesday.

FRAN Earnings & Outlook

Francesca’s Holdings said it earned $454,000, or $0.01 per share, compared with net income of $7.3 million, or $0.02 per share, in the second quarter of the previous year. Revenues for the quarter came in at $113.0 million, representing a drop of 6% from the $119.71 million reported in the earlier-year period.

Analysts on average were expecting earnings of $0.05 per share on revenue of $120.78 million. Same-store sales declined 13% failing to surpass the consensus average of a 6.8% drop.

The retailer sees net sales in the range of $105 million to $110 million, and comparable sales drop of between 3% and 8% for the current quarter to November, 3 2018. Analysts expect the company to come out with net sales of $116.5 million and comparable sales rise of 4.3% for the quarter.

For the full year, Francesca’s projects adjusted EPS in the range of $0.15 to $0.25 from its previous guidance of $0.53 to $0.63. Net sales are expected to between $453 million and $463 million, from its earlier guidance of $485 million to $499 million.

Francesca’s Holdings CEO Comments

Francesca’s Holdings Chief Executive Officer Steve Lawrence had this to say to investors, “Second quarter sales results were disappointing mostly due to weak traffic trends. While we have made significant progress in our merchandising strategy, inventory discipline and store renovations, we know there is additional work to be done to win back our core customer. We did see some positives in the business, including improving conversion, very strong ecommerce sales growth, and a significant reduction in clearance inventory.”

Francesca’s Holdings Corp Company Profile

Francesca’s Holdings Corporation, through its subsidiaries, operates a chain of retail boutiques. It offers fashion apparel, jewelry, accessories, and gifts primarily for women between the ages of 18 and 35.

The company’s apparel products comprise dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates; and jewelry includes necklaces, earrings, bracelets, and rings.

Its accessories consist of handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches, and hair accessories; and gifts include fragrances, candles, bath and body products, home accessories, books, wall art, nail polish, and miscellaneous items.

As of June 5, 2018, the company operated 744 boutiques in 47 states and the District of Columbia. The company also sells products through its Website at francescas.com. Francesca’s Holdings Corporation was founded in 1999 and is headquartered in Houston, Texas. –YahooFinance

IMAGE CREDIT