Francesca's Shares Plunge on Weak Outlook, CEO to Depart
May 17 2016 - 9:20AM
Dow Jones News
Francesca's Holdings Corp. said Chief Executive and Chairman
Michael Barnes resigned for personal reasons Tuesday, and the
boutique retailer also said it expected first-quarter earnings to
land at the bottom of its forecast.
Shares fell 23% to $11.50 in premarket trading. The stock had
slipped 17% in the past three months through Monday's close.
Francesca's elevated its lead director, Richard Kunes, to
interim chairman and CEO following Mr. Barnes's resignation, which
the company said was effective immediately. Mr. Barnes had been
named to his posts in December of 2014. He had previously been CEO
of Signet Jewelers Ltd.
For the quarter ended April 30, Francesca's said its preliminary
per-share profit was 17 cents. In March, the company guided for
earnings between 17 and 20 cents a share, which was a downbeat view
compared with analysts' expectations at the time. The company said
it would report full results June 9.
Mr. Kunes has served on Francesca's board since 2013 and served
as the lead director from July 2015 until his appointment as
interim CEO. He previously served as senior adviser to the CEO at
Esté e Lauder Cos. and spent 12 years as that company's chief
financial officer.
"We wish Mike the best in his future endeavors," Mr. Kunes said,
adding that Mr. Barnes built a strong leadership team. The company
said it has started a search for a successor.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
May 17, 2016 09:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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