Robbins Arroyo LLP Is Investigating the Officers and Directors of Francesca's Holdings Corporation on Behalf of Shareholders
SAN DIEGO and HOUSTON, Oct. 1, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Francesca's Holdings Corporation (NASDAQ: FRAN) breached their fiduciary duties to shareholders. Francesca's Holdings, through its subsidiary, Francesca's Collections, Inc., operates a chain of retail boutiques.
Francesca's Holdings Stock Drops on Report of Dismal Second Quarter 2013 Financial Results and Third Quarter Guidance
On September 4, 2013, Francesca's Holdings announced the company's financial results for the second quarter of 2013. Rather than profiting $.35 per share on revenue of $94.5 million as the company had touted to the market, Francesca's Holdings reported profits of just $.33 per share on $89.6 million in sales. The company indicated that "second quarter sales performance was softer than [it] anticipated," blaming in part "lower levels of customer traffic … and the lack of dominant apparel fashion trend" and noting that "traffic trends will remain challenging."
Similarly, rather than the nearly $90 million in sales Francesca's Holdings had led the investment community to expect in the third quarter 2013, the company forecast sales of just $78 to $80 million – and said it expected comparable sales to decline by 2%-5%. Further, Francesca's Holdings revised its guidance for the profit the company expected to earn in the third quarter of 2013 from $.30 per share to just $.19-$.21 per share.
On this news, the price of Francesca's Holdings common stock fell 25.94%, from $24.02 on September 3, 2013, to close at $17.79 on September 4, 2013.
Robbins Arroyo LLP highlights that Francesca's Holdings shareholders have the option to pursue a shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/francescas-holdings-corp/
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SOURCE Robbins Arroyo LLP