Francesca's (FRAN) reports Q2 Loss of $5.80/sh, to review strategic alternatives

Francesca's (NASDAQ: FRAN) reported Q2 EPS of ($5.80), versus $0.61 reported last year. Revenue for the quarter came in at $75.7 million, versus $106 million reported last year.

• Comparable sales decreased 5%

STRATEGIC ALTERNATIVES

The COVID-19 pandemic has and continues to result in an overall disruption in the Company’s operations and supply chain. As a result, the Company’s revenues, results of operations and cash flows continue to be materially adversely impacted which raises substantial doubt about the Company’s ability to continue as going concern. As a result, the Company has engaged FTI Capital Advisors (“FTI”) to assist with management’s evaluation and pursuit of available strategic alternatives. The Company, with FTI’s assistance, is evaluating various alternatives to improve its liquidity and financial position, including but not limited to, further lease concessions and deferrals, further reductions of operating and capital expenditures, raising additional capital including seeking a refinancing of the Company’s debt, and restructuring its debt and liabilities through a private restructuring or a restructuring under the protection of applicable bankruptcy laws. However, there can be no assurance that the Company will be able to improve its financial position and liquidity, complete a refinancing, raise additional capital or successfully restructure its indebtedness and liabilities. The Company’s strategic plans are not yet finalized and are subject to numerous uncertainties including negotiations with creditors and investors and conditions in the credit and capital markets.

The Company does not intend to disclose further developments unless and until the Board of Directors has approved a specific transaction or otherwise determined that disclosure is appropriate.FINANCIAL OUTLOOK

In light of the economic and business uncertainties caused by COVID-19, management is not providing quarterly and annual financial guidance in this earnings release. Additionally, management may not provide financial guidance in any future earnings release

For earnings history and earnings-related data on Francesca's (FRAN) click here.

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