NEW YORK (TheStreet) -- Shares of Francesca's Holdings Corp. (FRAN) are down 11.7% to $18.45 in trading today.
The drop comes after the holding company reported earnings at the low end of its raised guidance for the fourth quarter. Francesca's raised its fourth quarter guidance in January to 27-29 cents earnings per share (EPS) on revenues of $93-$95 million, from 25-29 cents EPS on $90-$95 million in revenue. The company hit marks of $92.1 million in sales and 27 cents EPS for the quarter.
Company President and CEO Neil P. Davis said, "Sales results for the fourth quarter were below our revised guidance driven by the impact of 370 full and partial daily boutique closings during January due to extreme weather conditions. Performance in regions less affected by extreme weather performed within our updated fourth quarter guidance."
TheStreet Ratings team rates FRANCESCAS HOLDINGS CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRANCESCAS HOLDINGS CORP (FRAN) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."