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.
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.
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.
Benchmark stock indexes pared their recent gains early this week amid elevated inflation concerns, but regained a part of the momentum later aided by recovery in tech stocks. The Dow
Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as
Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and