Francesca\'s Holdings (FRAN) PT Lowered to $8 at FBR Capital Following 2Q
FBR Capital lowered its price target on Francesca\'s Holdings (NASDAQ: FRAN) to $8.00 (from $10.00) while maintaining a Neutral rating following the company's 2Q earnings release. FRAN reported EPS of $0.20, versus the consensus estimate of $0.19. Management guided 3Q17 well below the Street due to impacts from Hurricane Harvey and weaker sales so far in 3Q17 from lackluster product causing more promos.
FRAN's corporate headquarters, e-commerce fulfillment, distribution center in Houston, and ~40 boutiques were affected by Hurricane Harvey. Management reflected Hurricane Harvey in lowered 3Q17 guidance, stating that FRAN is experiencing a supply chain disruption both online and in stores.