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 major steps to enhance their positioning as they move into the holiday period and beyond.
The highlights
The CEO of Francesca’s stated that as they previously discussed, their sales performance was impacted by merchandise slipups that impacted business throughout Q3 2017. In addition, comparable sales performance was impacted by a projected 425 basis points from hurricanes Irma and Harvey. They have implemented aggressive plan to get back on track by refocusing on their core customer and offering on their mission of delighting and surprising every guest, every time with an innovative, trend-right assortment at a remarkable value.
Lawrence added that they have seen operations get progressively better as the fresh receipts have landed and comparable sales in last month have sequentially improved over Q3 2017 performance. That being considered, there is still a lot of work ahead of company.
Looking ahead, they remain focused on the measures that will be critical for company’s success in the coming period. Francesca’s Holdings have spent the big part of 2017 placing building blocks for their upcoming period with the infrastructure investments they have made. Expanding their ecommerce business continues to be on priority and many of the initiatives implemented this year will assist them drive their web business now as well as in the future.
The CEO of Francesca’s concluded that they are also taking measures to rationalize their store fleet with an emphasis on closings in D and C malls and openings in B and A malls. They consider this plan is aligned with their objective to be in the most relevant sites. Overall, they remain focused on implementing measures to reinvigorate their merchandise assortments and doing investments in their business that will lead sustainable profitable growth for future.
