Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Francesca’s Holdings Corp (FRAN) Earnings: An Early Look

Francesca's Holdings Corp (NASDAQ:FRAN)Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Francesca’s Holdings Corp (NASDAQ:FRAN) is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

The retail space is a crowded one, with every player seeking out its own niche. For Francesca’s Holdings Corp (NASDAQ:FRAN), the company’s retail boutiques combine apparel, jewelry, and accessories under one roof. But is that enough to distinguish the company from its many rivals? Let’s take an early look at what’s been happening with Francesca’s Holdings over the past quarter and what we’re likely to see in its quarterly report on Tuesday.

Stats on Francesca’s Holdings

Analyst EPS Estimate $0.30
Change From Year-Ago EPS 50%
Revenue Estimate $84.9 million
Change From Year-Ago Revenue 38%
Earnings Beats in Past 4 Quarters 4

Source: Yahoo! Finance.

Will Francesca’s Holdings keep its earnings-beat streak alive this quarter?
Analysts have pushed up their views on Francesca’s Holdings Corp (NASDAQ:FRAN) slightly in recent months, adding $0.02 per share both to their earnings consensus for the just-ended holiday quarter and to their fiscal 2014 views. The stock has climbed as well, rising about 11% since mid-December.

Francesca’s gave investors reason to celebrate a bit early this quarter, as it boosted its guidance even before the quarter finished. Back in mid-January, Francesca’s Holdings Corp (NASDAQ:FRAN) said that sales during the holidays had been slightly stronger than it had initially projected, leading it to push its sales and income estimates slightly higher, in line with what analysts now expect.

So far, Francesca’s has done a spectacular job of building growth in the often-fickle young-adult retail segment. Upscale retailers Michael Kors Holdings Ltd (NYSE:KORS) and Coach, Inc. (NYSE:COH) were among the first to discover the value of including accessories and jewelry among their collections, but Francesca’s Holdings Corp (NASDAQ:FRAN) has used the same strategy in its own niche with impressive results. Moreover, Francesca’s commitment to bringing new merchandise to its stores on a weekly or even daily basis inspires repeat visits, helping produce the amazing same-store sales the company has posted.

In Francesca’s quarterly report, watch closely at how CEO Neill Davis continues to expand on his own vision for the company going forward. With Davis having taken over the reins from former CEO John De Meritt last fall, Francesca’s Holdings Corp (NASDAQ:FRAN) needs to establish its continuing ability to grow quickly in order to justify its relatively high current valuation.

The article Francesca’s Earnings: An Early Look originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends and owns shares of Coach.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.