Is Francesca’s Executive Change Enough to Spark a Turnaround?

By Chris Lange Updated Jan 30, 7:01PM EST · Published Jul 2, 3:20PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Is Francesca’s Executive Change Enough to Spark a Turnaround? — © Thinkstock

Francesca’s Holdings Corp. (NASDAQ: FRAN) shares saw a major downturn on Tuesday after the firm announced that it would be making a change at the top. Specifically, the CFO will be resigning later this month. This is part of the company’s turnaround effort, but is it enough?

This announcement comes amid declining sales, job cuts, and store closures. So far in 2019, Francesca’s has underperformed the broad markets with its stock down about 54% year to date. In the past 52 weeks, the stock is down closer to 94%. Note that these numbers are prior to the 12-1 reverse stock split that took place on July 1.

As for the executive shift, Kelly Dilts executive vice president and CFO will resign from her position effective July 19, 2019 to pursue another opportunity. Francesca’s has named Cindy Thomassee, currently serving as senior vice president and chief accounting officer, to assume the role of executive vice president and CFO.

Thomassee will report directly to the Interim CEO, Michael Prendergast. Dilts will work closely with Thomassee in the meantime to ensure a smooth transition.

[nativounit]

Prendergast commented:

We want to thank Kelly for her contributions during her tenure at francesca’s and wish her much success in her future endeavors. Cindy has been a valued member of francesca’s executive management team for many years. We look forward to her continued financial leadership as we partner together to execute the strategic turnaround plan and return the company to longer-term positive sales, cash flow and operating income performance.

Shares of Francesca’s were last seen down over 12% at $4.63, with a 52-week range of $0.37 to $8.48. The consensus analyst price target is $1.75.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.