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Francesca's Holdings (FRAN) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
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.[1]
Business Overview
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.[2]
New Updates
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).[3]
Trends & Forces
Dependence on Boutique style stores
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. [4]
- ↑ FRAN S-1/A 2011 PROSPECTUS SUMMARY "Our Company" pg1-2
- ↑ FRAN S-1/A 2011 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL AND OPERATING DATA" pg 10
- ↑ Renaissance Capital - IPO Home "Specialty retailer Francesca's prices IPO at $17, above the range" 21 July 2011
- ↑ FRAN S-1/A 2011 PROSPECTUS SUMMARY "Competitive Strengths" pg2-3
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