Francesca’s may not be a household name like Walmart, Target or other major retailers. However, shares of Francesca’s Holdings Corp. (NASDAQ: FRAN) were absolutely beating every other retailer in the market on Tuesday, after it announced second-quarter earnings before the opening bell.
The firm said that it had $0.72 in earnings per share (EPS) and $106.0 in revenue, which compared with $0.12 per share and $113.0 million posted in the same period of last year.
Comparable sales decreased by 5% in the latest quarter. The decrease in comparable sales was the result of lower average unit retail prices associated with deeper markdowns on legacy product. This decrease was partially offset by higher boutique conversion rates and higher average units per transaction.
In terms of its segments, the firm reported as follows:
- Apparel sales decreased 8% year over year to $52.39 million.
- Jewelry sales increased by 4% to $27.96 million.
- Accessories sales decreased 6% to $16.21 million.
- Gifts sales decreased by 25% to $8.53 million.
Michael Prendergast, interim CEO, commented:
We are very pleased to see significant improvement in our comparable sales for the second quarter. After a long period of double digit comp sales declines we achieved considerable sequential improvement in our comp sales in each month within the quarter. Gross margin was impacted by aggressive markdowns on poor performing legacy products that we accelerated within the quarter. However, we saw strong and better than expected sell through on new merchandise. … We realized material savings this quarter through a number of cost reduction initiatives that we have been executing since the beginning of fiscal 2019.
Shares of Francesca’s traded up more than 80% early Tuesday at $9.32, in a 52-week range of $2.78 to $52.92. The consensus price target is just $1.75.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.