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Board authorized a $100 million share repurchase program
HOUSTON, Sept. 4, 2013 (GLOBE NEWSWIRE)
--Francesca's Holdings Corporation (Nasdaq:FRAN) today reported net income of $14.6 million or $0.33 per diluted share for the second quarter of 2013, compared to net income for the second quarter of 2012 of $12.7 million, or $0.28 per diluted share. The Company also announced the board of directors authorized a $100 million share repurchase program.
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."
Mr. Davis continued, "Going into the third quarter we are challenged with strong prior year growth rates and although we have experienced improvements in traffic trends during the final week of August, no clear direction has emerged. While we are taking action to drive our performance, we anticipate that traffic trends will remain challenging. Accordingly, we are reducing our outlook for 2013. Several initiatives are underway that we believe will benefit our long term financial performance. These initiatives include leveraging the DTC channel to build on the affection our already loyal customer has for our brand, strengthening visual presentations in boutiques to make fashion trends easier to shop, and additional infrastructure improvements. Overall, we are highly confident in our differentiated, fast growing, and highly profitable business model and we are steadfast in our efforts to deliver on our long-term growth objectives."