Another day, another warning from a retailer, in this case apparel retailer Francesca's (FRAN).
From the release:
- Company Provides Preliminary Second Quarter Results
Preliminary Second Quarter Results
Preliminary comparable sales for the fiscal second quarter ended July 29, 2017, decreased 3% and preliminary diluted earnings per share for the second quarter is expected to be $0.20.
Mr. Lawrence continued, “We are pleased to have exceeded our second quarter EPS guidance, driven by better than expected merchandise margin and lower than expected SG&A. That said, we note that back-to-school has been off to a very challenging start and our comparable sales have further decelerated from July. We will provide additional detail on our second quarter performance, as well as discuss our third quarter and full year outlook, on our upcoming earnings call.”
Fortunately, the market has not decided to smack down the retail/mall REITs on the news. This is not a huge tenant to the space, but might signal some weak releases coming up during back-to-school season. Most retail REITs are currently in the green, except PREIT (PEI).
Disclosure: I am/we are long PEI, SKT, CBL, WPG, BRX.