Categories Consumer, Earnings, Retail

Francesca’s stock soars after Q2 results announcement

Shares of Francesca’s Holdings Corporation (NASDAQ: FRAN) jumped 91% in morning hours on Tuesday following the company’s second quarter 2019 earnings announcement.

Net sales dropped 6% year-over-year to $106 million due to a 5% decrease in comparable sales. The comp sales decline was driven by lower average unit retail prices related to deeper markdowns on legacy products. This decline was partially offset by higher boutique conversion rates and average units per transaction. 

The company reported net income of $1.8 million, or $0.61 per share, compared to $0.5 million, or $0.16 per share, in the year-ago period. Adjusted net income was $2.1 million, or $0.72 per share. 

retail stocks
(Image for representation only/Image Courtesy: Kai Pilger/Unsplash)

Gross profit, as a percent of net sales, decreased to 38.2% from 39% in the prior year quarter, driven by lower merchandise margins due to deeper markdowns on legacy products and deleveraging of occupancy costs as a result of lower sales.

SG&A expenses dropped 10% to $39.1 million. The company realized material savings during the quarter through a number of cost reduction initiatives it has been executing since the beginning of the year. 

Also read: Tailored Brands Q2 2019 Earnings Preview

During the quarter, Francesca’s opened one new boutique and closed five boutiques, bringing the total boutique count to 718 at the end of the period.  

At quarter-end, the company had $30.9 million of inventory on hand compared to $31.9 million in the same period last year. Average ending inventory per boutique was flat at $43,000 versus the prior-year period.

Last month, activist investor Cross River Management disclosed a 22% stake in Francesca’s and stated they were engaged with the board and management, according to a report by MarketWatch.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top