Francesca's Shares Plunge on Weak Outlook, CEO to Depart

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)

Francescas (NASDAQ:FRAN)
Historical Stock Chart
From Jun 2024 to Jul 2024