Francesca’s Holdings Corp (NASDAQ: FRAN) facing 6% reduction of net sales in fiscal quarter ended August 3, 2019

On Friday Francesca’s Holdings Corp (NASDAQ: FRAN) ended the last transaction at $16.44., with a change of 0.18%. The company has a market worth of $50.14M. It holds an average volume of 1M shares. In recent session, the stock hit the peak level of $16.74 and touched to lowest level of $15.97.

Francesca’s Holdings Corp (NASDAQ: FRAN) recently stated financial results for the second quarter ended August 3, 2019.

Net sales reduced 6% to $106.0M from $113.0M in the comparable previous year quarter Because of a 5% decrease in comparable sales.

Gross profit, as a percent of net sales, reduced to 38.2% from 39.0% in the previous year quarter.

Selling, general and administrative (SG&A) expenses reduced 10% to $39.1M from $43.3M in the previous year quarter. Adjusted SG&A in the second quarter of fiscal 2019 was $38.7M and excludes $0.5M in other payroll costs associated with the Company’s turnabout plan, $0.3M of professional fees incurred in connection with the Company’s before reported reverse stock split and adoption of a shareholder rights plan, and $0.3M of stock-based compensation reversal associated with the departure of the Company’s former Chief Financial Officer.

The $4.6M decrease in adjusted SG&A in the second quarter of fiscal year 2019 versus the comparable previous year period was primarily Because of a $2.5M decrease in boutique payroll and supplies associated with the Company’s cost reduction initiatives under the turnabout plan. Additionally, corporate payroll and related expenses reduced $0.9M primarily Because of the lower headcount as a result of the February 2019 workforce reduction, marketing expenses reduced $0.4M, and asset write-off charges related to boutique remodels reduced $0.3M.

Income from operations was $1.4M contrast to $0.8M in the previous year quarter.  Not Including the adjustments noted above for adjusted SG&A, adjusted income from operations in the second quarter of fiscal year 2019 was $1.8M. There were no non-GAAP adjustments for income from operations in the second quarter of fiscal 2018.

The Company’s income tax benefit was $0.3M in the second quarter of this year contrast to an income tax expense of $0.4M in the comparable previous year quarter.

Net income for the second quarter was $1.8M, or $0.61 diluted earnings per share, contrast to $0.5M, or $0.16 diluted earnings per share, in the previous year quarter. Adjusted net income for the second quarter of fiscal year 2019 was $2.1M, or $0.72 adjusted diluted earnings per share.

Total cash and cash equivalents at the end of the second quarter ended August 3, 2019 were $22.0M contrast to $23.4M at the end of the comparable previous year quarter.  On August 3, 2019, the Company had $10.0M outstanding borrowings under its Asset Based Revolving Credit Facility (the “ABL”).

As before revealed, the Company entered into a Term Loan Credit Contract (the “Term Loan”) with Tiger Finance, LLC for an aggregate term loan of $10.0M which matures on August 13, 2022. The proceeds from this Term Loan were used to pay the $10.0M outstanding under the Company’s existing ABL. As of August 31, 2019, the combined borrowing base availability under the Company’s ABL and Term Loan was $16.3M.

The Company ended the quarter with $30.9M of inventory on hand contrast to $31.9M at the end of the comparable previous year period. Average ending inventory per boutique was flat at $43k versus the comparable previous year period.

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