Francesca's Holdings: Under The Masks - Problems Then, Now And Ahead
Jenks Jumps • 19 Comments
Jenks Jumps • 19 Comments
Tue, Aug. 16, 10:26 AM
- The RetailMeNot Promotions Index will measure the average retail promotions level from the top 500 U.S. retailers across 19 different categories.
- The broad promotion index currently reads 32.58% which RetailMeNot calls a "moderate" level.
- Tracking of the RetailMeNot data could be of particular interest in the apparel store sector (GPS, LB, AEO, ANF, CHS, PLCE, DSW, DXLG, FRAN, BKE, SSI, DEST, NWY, CTRN, GES, TLRD, SMRT.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC).
- Source: Press Release
Thu, Aug. 11, 9:59 AM
- The retail sector is racking up sizable gains after Macy's set the table with a major store closing announcement (15% of full-line stores).
- Earnings beats at Macy's and Kohl's, along with a surprise upgrade on American Eagle Outfitters (AEO +4.6%) are also helping to boost sentiment.
- Notable gainers include Guess (GES +4.3%), Dillard's (DDS +5.8%), Ascena Retail Group (ASNA +4.6%), Stage Stores (SSI +7.7%), Sears Holdings (SHLD +4.6%), Gap (GPS +3.5%), Abercombie & Fitch (ANF +3.2%), Barnes & Noble (BKS +3.2%), Urban Outfitters (URBN +1.3%), Francesca's (FRAN +2.5%), DSW (DSW +3.5%), Pier 1 Imports (PIR +4%), and Finish Line (FINL +2.4%).
- The S&P 500 Retail ETF (NYSEARCA:XRT) is up 2.1% on the day off the chain store buzz.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, JHMC, CNDF
Mon, Jul. 25, 11:09 AM
- Apparel store stocks are off and running today on some broad strength.
- The sector has seen more buying action of late after hitting a prolonged rough patch. A couple of solid reports on June sales from key retailers and some calming down of the recent civil unrest has contributed to improved outlook.
- Notable gainers include Gap (GPS +3.5%), Nordstrom (JWN +3.3%), L Brands (LB +2.9%), Urban Outfitters (URBN +2.8%), Macy's (M +2.3%), Kohl's(KSS +1.7%), Francesca's Holdings (FRAN +1.5%), Chico's FAS (CHS +2.1%), Tailored Brands (TLRD +1.5%), and DSW (DSW +1.8%).
Mon, Jul. 11, 1:34 PM
Fri, Jun. 10, 8:02 AM
- FBR Capital cuts its price target on Francesca's (NASDAQ:FRAN) to $12 from $19 (based off of 12X P/E) after digesting the retailer's Q1 report.
- "We like FRAN's initiatives; however, we remain on the sidelines and look for increased visibility regarding mall traffic, omni-channel capabilities, strategic investments, and consistent comp performance," writes analyst Susan Anderson.
- Wall Street is still surprisingly bullish on FRAN, with 8 Hold ratings and 4 Buy ratings on the scorecard and no Sells/Underweights to be found.
- Shares of FRAN are down 39% YTD.
Thu, Jun. 9, 9:11 AM
Thu, Jun. 9, 7:45 AM
- Francesca's (NASDAQ:FRAN) reports comparable-store sales rose 2% in Q1 driven by an increase in the number of transactions both at the boutiques and on-line.
- Ecommerce comparable sales increased 38% for the period.
- Merchandise category sales: Apparel: $54.89M (+14%); Jewelry: $24.06M (+10%); Accessories: $16.05M (+4%); Gifts and home: $11.33M (+15%).
- Gross margin rate decreased 100 bps to 46.3%.
- SG&A expense rate expanded 80 bps to 35.5%.
- Operating margin rate dropped 170 bps to 10.8%.
- Inventory +10.8% Y/Y to $34.8M.
- Boutique count +30 Q/Q to 646.
- Q2 Guidance: Net sales: $106M to $110M; Comparable-store sales: mid-single digit decrease; EPS: $0.16 to $0.19; New boutiques: 15 to 20.
- FY2016 Guidance: Net sales: $460M to $480M; Comparable-store sales: flat to a low-single digit decrease; EPS: $0.86 to $0.96; Shares outstanding: 39.6M; Tax rate: 37.8%; Capital expenditure: $28M to $31M; New boutiques: 50 to 60.
Thu, Jun. 9, 7:34 AM
Wed, Jun. 8, 5:30 PM
Tue, May 17, 12:47 PM
Tue, May 17, 9:45 AM
- Francesca's (NASDAQ:FRAN) plunges after CEO and Chairman Michael Barnes resigns for personal reasons. The company’s former lead director, Richard Kunes, will take over as interim chairman and CEO.
- The company also discloses that it expects FQ1 EPS of $0.17 vs. $0.20 consensus.
- Shares of the retailer are down 28% to $10.71 in early trading.
Tue, May 17, 9:20 AM
Tue, May 10, 2:58 PM
- Gap's (GPS -12%) weak report on April sales, which followed shortly after an eye-opening read from L Brands (LB -1.2%), has investors skittish on the apparel store stocks.
- Sector decliners today include Francesca's (FRAN -3.4%), Stein Mart (SMRT -3.5%), Ascena Retail (ASNA -3%), Express (EXPR -2.2%), Buckle, Cato (CATO -2.1%), Abercrombie & Fitch (ANF -2%), Amercan Eagle Outfitters (AEO -2%), Tailored Brands (TLRD -1.3%), and Urban Outfitters (URBN -1.5%)
- Analysts are warning that the lack of overall sales volume and the closing of Aeropostale stores could continue to add to the promotional atmosphere.
- In another sign of the problem that apparel stores are having in driving sales with millennials, the new Global X Millennials Thematic ETF (NASDAQ:MILN) has a top holding of Amazon and very little representation of apparel chain stock stocks (LULU and LB make the list).
Thu, May 5, 10:59 AM
- Apparel store stocks trade lower after one of its stalwarts takes it on the chin. L Brands (NYSE:LB) is down 10.5% with even the resilient Victoria's Secret business showing signs of weakness.
- Notable decliners include Urban Outfitters (URBN -3.4%), Guess (GES -3.7%), Francesca's (FRAN -1.8%), Gap (GPS -2.6%), Genesco (GCO -2.8%), Ascena Retail Group (ASNA -3%), Express (EXPR -2%), and Chico's FAS (CHS -2.4%).
- Buckle (BKE -5.8%) and Abercombie & Fitch (ANF -4.5%) are also down, with the former reporting weak April sale and the latter losing an exec on top of the L Brands development.
Wed, Apr. 13, 10:54 AM
- Wolfe Research upgrades Francesca's (FRAN +4.1%) to an Outperform rating on a valuation call.
- The investment firm thinks some of the momentum the retailer generated in Q4 will continue this year.
- Management pushed the right levers at the company to generate more transactions at a higher average price, not the easiest task in the mall retailer sector.
- Now read Francesca's Holdings: Still Plenty To Prove
Wed, Mar. 23, 7:56 AM
- Francesca's (NASDAQ:FRAN) reports comparable-store sales rose 11% in Q4 due to increases in comparable transactions and average transaction value.
- Direct-to-consumer sales increased 38% to $6.1M.
- Merchandise category sales: Apparel: $53.43M (+35%); Jewelry: $29.66M (+23%); Accessories: $24.28M (+8%); Gifts: $26.62M (+26%).
- Gross margin rate increased 340 bps to 49.1%.
- SG&A expense rate -460 bps to 31.2%.
- Adjusted operating margin rate grew 410 bps to 18.4%.
- Inventory +32.5% Y/Y to $31.54M.
- Boutique count -3 Q/Q to 616.
- Q1 Guidance: Net sales: $108M to $112M; Comparable-store sales: mid-single digit increase; EPS: $0.17 to $0.20; New boutiques: 20 to 25.
- FY2016 Guidance: Net sales: $474M to $494M; Comparable-store sales: low-single digit increase; EPS: $0.93 to $1.03; Shares outstanding: 40.2M; Tax rate: 38.1%; Capital expenditure: $28M to $31M; New boutiques: 50 to 60.
- FRAN -4.84% premarket.
Francesca's Holdings Corp. engages in shopping business through its subsidiaries. It operates through the Operation of Boutiques and Direct-To-Consumer Website segments. The Operation of Boutiques segment engages in merchandise offered at retail locations through the direct-to-consumer business.... More
Industry: Apparel Stores
Country: United States