Francesca’s Holdings Earnings: Here’s Why the Stock is Falling Now

Francesca’s Holdings Corp (NASDAQ:FRAN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 19.86%.

Francesca’s Holdings Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.86% to $0.33 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 17.32% to $89.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Francesca’s Holdings Corp reported adjusted EPS income of $0.33 per share. By that measure, the company missed the mean analyst estimate of $0.35. It missed the average revenue estimate of $94.49 million.

Quoting Management: Neill P. Davis, francesca’s Chief Executive Officer stated, “While we posted high teens increases in second quarter and year to date sales and earnings, our second quarter sales performance was softer than we anticipated. We were able to maintain strong profitability with operating income margins only modestly below the prior year levels. Our performance in the quarter reflects the anniversary of very strong rates of growth in the prior year; lower levels of customer traffic most evident in the later part of the second quarter and the lack of a dominant apparel fashion trend.”

Key Stats (on next page)…