- Robyn Turk |
Francesca's is looking to close quite a few of its stores. After reporting a 13 percent decrease in its net sales compared to last year for its first quarter results, the womenswear boutique retailer announced that it will shutter at least 30 stores this year.
The company reported a loss of 10.1 million dollars, and noted in its earnings report that its profit decrease was "principally due to deleveraging of occupancy costs as a result of lower sales."
The company has already closed eight boutiques during this quarter, despite opening three new locations. Its the total boutique count at the moment is 722.
Francesca's CFO Kelly Dilts told analysts on the company’s earnings call on Thursday morning that the company expects to close at least 30 stores to turn its earnings around.
“While we are still in the early stages of executing our turnaround, and we have a long road to success, we are highly encouraged by these initial results," said interim CEO Michael Prendergast in the earnings report. "We continue to believe that our strategic turnaround plan will return the company to longer-term positive sales, cash flow and operating income performance.”