Why Francesca’s (FRAN) Stock Is Slumping Today

NEW YORK (TheStreet) -- Shares of Francesca's Holding Corp. (FRAN) are down by 3.26% to $13.52 on heavy volume in mid-morning trading on Tuesday, after the company reported a decline in 2014 second quarter net income to $10.3 million, or 24 cents per share, from $14.6 million, or 33 cents per share for the year ago period.

However, the apparel and accessories company said net sales increased 9% to 97.3 million for the most recent quarter, due to the opening of 75 new boutiques.

Francesca's cut its earnings outlook for the year and is now expecting EPS to be between 88 cents and 98 cents, compared to its previous guidance of $1.05 to $1.17.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Sales for the full year are estimated to be between $373 million and $383 million versus Francesca's previous forecast of $387 million to $399 million.

The company's current quarter guidance for EPS between 17 cents and 22 cents is below the estimates of analysts polled by Thomson Reuters of 25 cents per share.

Separately, 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 deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."

You can view the full analysis from the report here: FRAN Ratings Report

FRAN Chart FRAN data by YCharts

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