Is Francesca’s Holdings Corp (FRAN) a Retail Succss or Just a Fad?

Page 1 of 2

Based on research, Francesca’s Holdings Corp (NASDAQ:FRAN) seems to be on a winning streak. The company started in 1999 in Houston and currently operates over 360 boutiques. The stores have a one of a kind upscale feel, caters to 18-35 year old women and allow managers to personalize each store providing the impression of individual stores.

Francesca’s collection carries limited quantities of items to create a so-called treasure hunt ambiance. The stores carry half apparel and half accessories. The apparel is described as eclectic and sophisticated for career-oriented women who don’t care to shop at a more generic store with bland fashions. New merchandise is introduced every 5 days to keep customers coming back to check all the new styles and offerings. The company only buys merchandise for delivery within 90 days to keep it fresh.

Francesca's Holdings Corp (NASDAQ:FRAN)The company’s spring collection focuses on classic designs, from dress, separates, pants and pastel colors like muted pinks, oranges, turquoise and green with occasional tribal and unexpected print.

The stores are spacious, clean and well laid out again creating a one of a kind and personal experience although the consumer is in a chain store.

Competitors

Francesca’s biggest competitors are New York based Ann Inc (NYSE:ANN) Taylor, San Diego based Charlotte Russe that was taken private by Advent International back in 2009, and Philadelphia based Urban Outfitters, Inc. (NASDAQ:URBN) .

Ann Taylor’s spring collections are all about color blocking, graphic black and white and bold floral, which is completely opposite of Francesca’s. Charlotte Russe spring forecast is a cross between both Ann Taylors and Francesca’s. Urban Outfitters primary look is more laid back and BoHo California look.

Francesca’s style and look is very classic and traditional, a style that has appealed to women for decades and sure to be around for some time.  For this spring season Francesca seems to have the right combinations of colors, styles and fashion to make for a successful season. The company appears to have the edge over the competition.

Store Growth

The company opened 77 stores in 2012 and plans to grow the store base by reaching up to 900 stores in the US. Conversely, Ann Taylor operates approximately 960 upscale boutiques including the namesake Ann Taylor stores and the Loft brand. While Urban Outfitters operates around 600 stores in the US which include Free People, Anthropologie, BHLDN and Terrain brands. Charlotte Russe has around 560 stores providing the best comparison, but unfortunately the private company doesn’t have financials to analyze.

None of the companies have a single brand with more than 560 stores so whether Francesca’s can reach the lofty 900-store level goal without cannibalizing existing stores could become a question. The company does have 6 stores in the small state of Arkansas suggesting it has the style and price points supportable my markets as small as Fort Smith.

In the end, Francesca’s has the right concept as far as the one of a kind boutique shopping experience that consumers are drawn to.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!