Francesca's (FRAN) is down 9% premarket after the company preannounced mixed Q2 results and announced the departure of Executive Vince President and Chief Marketing Officer Laurie Hummel this morning.
Francesca's expects to report second quarter EPS of $0.20 with comparable store sales down 3%. In early June, Francesca's guided for second quarter EPS of $ $0.13-0.18, assuming comps down 3% to +1%.
CEO Steve Lawrence: "We are pleased to have exceeded our second quarter EPS guidance, driven by better than expected merchandise margin and lower than expected SG&A. That said, we note that back-to-school has been off to a very challenging start and our comparable sales have further decelerated from July. We will provide additional detail on our second quarter performance, as well as discuss our third quarter and full year outlook, on our upcoming earnings call"
Retailers continue to struggle with declining traffic. This marks the second quarter in a row that the company missed same-store sales estimates. Commentary about a slow start to August and the all-important back to school season will lead to lower estimates for the third quarter as well.
The stock trades at ~9x earnings with a $270 million market cap and is set to open at an all-time low this morning.