Francesca’s Holdings Corp (NASDAQ:FRAN) is best known as a specialty retailer focused on female customers edged between 18 and 35 years. Early this year, the company updated on its store-count whereby it reported having 451 boutiques, which are located across 45 states including the District of Columbia.
Analyst predict major swings in the market… will it affect FRAN?
In addition to brick-and-mortar stores, Francesca’s Holdings Corp (NASDAQ:FRAN) also has an e-commerce arm through which it fulfills online orders. However, since going public in 2011, the company has mostly known pain than good.
Performance highlight
Francesca’s Holdings Corp (NASDAQ:FRAN) reported earning $0.24 per share and revenue of $97.30 million in the most recent quarter. The performance fell short of the estimate as analysts on the average expected earnings of $0.26 and revenue of $99.78 million for the quarter. Nonetheless, revenue was up 8.6% over the same quarter in the previous year.
Top leadership changes
In a move that seems aimed at improving performance in the company, Francesca’s Holdings Corp (NASDAQ:FRAN) announced Michael Barnes as its new president, chairman and CEO. Barnes replaces Neill Davis as President and CEO, according to an article on The Wall Street Journal. He also replaces Greg Brenneman as the chairman of the company. The changes in the management structure that were announced last week take effect immediately.
Barnes is not new to helping struggling businesses regain their footing. He the CEO at Signet Jewelers Ltd. (NYSE:SIG) during which the company purchased Zale Corp for $1.5 billion. Barnes was also at Fossil Group Inc where he served in the capacity of COO.
Performance prediction
On December 5, Francesca’s Holdings Corp (NASDAQ:FRAN) updated on its 3Q performance expectation. The company predicted 3Q revenue of $87 million and earnings of $0.17 per share. Analysts on the average are looking for revenue of $88 million and earnings of $0.18 per share for the quarter. The full results for the quarter will be released on December 10.
Shares of Francesca’s Holdings Corp (NASDAQ:FRAN) have declined about 18% since the beginning of this year. There have not been reports of stock promotion in the company.
Technical
Francesca’s Holdings Corp (NASDAQ:FRAN) bulls must be very happy with the huge 30% jump on Friday which also marked the first higher high since last January. Now any correction that doesn’t register a lower low would signal a real intermediate uptrend.
The price action in this week would be very important as a very similar setup was seen last January, even the volume spike, that failed to trigger a sustained rise. Currently $15.50 may act as a resistance and $13 should provide support on any correction.
