Francesca's Holdings (NASDAQ:FRAN) operates retail clothing, jewelry and accessories targeted towards women between the ages of 18-35. The company focuses on making each store feel like an independently owned boutique rather than a homogeneous chain. In addition, the stores purposely carry relatively few items and bring new items frequently to develop a feeling of scarcity and uniqueness of the goods among customers.
For the full year 2010, Francesca's total revenue was $135M this compares to a total revenue of $79M in 2009. The company's net income was $3.9M in 2010 and $1.6M in 2009.
The company's initial public offering of stock on the NASDAQ occurred on July 21, 2011. The company offered 10M shares each for $17. This was above the initial price range of $14-$16. The deal raised a total of $170. The lead underwriters were Goldman Sachs Group (GS), J P Morgan Chase (JPM), and Jefferies Group (JEF).
Francesca's focuses on using what it calls a boutique style store. These stores, at 1,400 square feet on average, tend to be much smaller than standard specialty retailers. In addition, the company has a rigorous process by which they select real estate locations. Francesca's focuses on this in the hopes to provide a differentiated shopping experience to its customers. This does allow the company to be relatively unique, but it also increases the cost and the timeline of building new stores. In some ways, this could be thought of as a quality over quantity business model.