Stifel Positive on Francesca's (FRAN) CEO Appointment; Affirms at 'Hold'
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Stifel affirms Francesca's Holdings Corporation (Nasdaq: FRAN) at Hold after the company announced Tuesday the appointment of Steven P. Lawrence as President and Chief Executive Officer.
Analyst Richard Jaffe commented:
- Good Hire for FRAN: After speaking with company management, we believe Mr. Lawrence is a good fit for the organization. In addition to merchandising, he also has experience in marketing, store operations and omnichannel buying. We view this as a positive given the company already has a strong merchant in place and his focus will be on all aspects of the business. Additionally, the strategy put in place by Michael Barnes continues to effectively drive positive results, allowing Mr. Lawrence to take a longer term view on how to grow the company.
- Slow Start to E-commerce Playing Out Favorably: E-commerce, which represents approximately 5% of total sales, remains a significant opportunity for growth. By being a little late in creating its omnichannel strategy, the company avoided some of the mistakes made by others; significant upfront investments in technology that are no longer utilized. This gave FRAN the opportunity to learn from what others were doing before making the large investments. Management indicated that while e-commerce is dilutive to operating margin it is a positive contribution to EBIT dollars. E-commerce is anticipated to be 20% of total sales in the next five years.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Upgrades Abraxas Petroleum (AXAS) to Buy Amid Emerging Delaware Basin Potential
- Skyworks Solutions (SWKS) PT Raised to $105 at Oppenheimer Following 1Q Report
- UPDATE: Stifel Starts Safe Bulkers (SB) at Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Management Changes
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!