Francesca’s Holdings Corp (NASDAQ:FRAN) issued financial report for the third quarter closed October 28, 2017. Steve Lawrence, the CEO and President, expressed that while their third quarter was a tough period, they took decisive initiatives to improve their positioning as they move into the holiday season.
The CEO of Francesca’s Holdings added that as they previously reported, their sales performance was impacted by merchandise missteps that influenced their operations throughout the third quarter. In addition, comparable sales results were affected by a projected 425 basis points from Irma and Harvey hurricanes.
They have taken aggressive initiative to get them back on track by refocusing on their core consumer and offering on their objective of surprising and delighting every guest. The company has noted operations turn progressively better as the fresh receipts have landed and comparable sales in the month of November have enhanced sequentially from third quarter performance.
Looking ahead, Francesca’s Holdings remain focused on the plans that will be critical for company’s success in the upcoming period. Lawrence added that they have spent a notable part of this year putting in place blocks for their future with the key infrastructure investments done.
Growing their ecommerce segment continues to be their priority and many of the elements they have put in place in 2017 will help them boost their online business in the upcoming period. The firm has been also taking measures to rationalize store fleet. For Q3 2017, net sales dropped 11% to $105.8 million over the same quarter in 2016. This drop was due to an 18% drop in comparable sales in the reported quarter.
In the last trading session, the stock price of Francesca’s Holdings gained more than 3% to close the day at $7.35. The gains came at a share volume of 1.36 million compared to average share volume of 1.31 million.