EmailFrancesca (FRAN $25.59 +1.57) announced it has terminated for cause the employment of CFO Gene Morphis, based on an investigation by the Board of Directors with the assistance of outside counsel, which has found that he improperly communicated Company information through social media. The investigation was launched after the Company discovered this activity on May 11, 2012. A search for a new Chief Financial Officer is underway. Cynthia Thomassee, Francesca's Controller since 2007 and Vice President of Accounting since 2010, will serve as Interim Chief Financial Officer.
The company also announced today that it expects to report same store sales for Q1 ended April 28, 2012 above its previously announced guidance and, as a result, Francesca's is raising its EPS guidance to $0.17-$0.18 from $0.14-$0.15 versus the the $0.15 consensus. "We are disappointed by this situation but we expect our executives to comply with all Company policies. We acted immediately on Friday afternoon when we first became aware of the matter and have moved swiftly to replace Mr. Morphis based on the findings of the investigation."
