Josh Arnold
Long/short equity

Francesca's: Blistering Growth At A Wal-Mart Price

Francesca's (NASDAQ:FRAN) is a specialty retailer of women's apparel and accessories. The company, headquartered in Houston, sells women's dresses, tops, sweaters, outerwear, shoes, jewelry, accessories, and more all geared toward its core customer. Speaking of its core customer, Francesca's targets 18 to 35 year old women it describes as 'fashion conscious' and enjoys the differentiated shopping experience and value that Francesca's provides. The company has grown by leaps and bounds in recent years but shares are well off of their 52 week highs on concerns about slowing comparable store sales growth and general softening in Francesca's ability to monetize its customers. I will argue in this article that the concerns over Francesca's comp sales are overblown and that...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details