In a recent business update, Francesca’s noted an optimistic outlook for their upcoming quarter. The retailer also reported that sales in their reopened boutiques have been meeting expectations with higher conversion rates.
“Sales of reopened boutiques are trending within our expectations, with higher conversion largely offsetting lower traffic trends. With an increased focus on boutique promotions, as part of our phased reopening plans, we have cleared through the majority of our aged product, which we believe will place us in a better inventory position heading into the fall season,” said Andrew Clarke, Chief Executive Officer and President at Francesca’s.
Despite a challenging Q1 due to COVID-19, the retailer believes they are on the right path forward.
“Our business model enables us to respond quickly to shifts in consumer demand so that we may manage our inventory flow to align with consumer demand,” Clarke said.
Francesca’s is aiming to have net sales up to $71 million for Q2, which would result in a significant increase from the previous quarter. They also have plans for more aggressive promotions to get rid of the rest of their excess inventory.
After providing a hopeful second-quarter outlook on Tuesday, the retailer’s stocks had soared to 42.5%.
Across our portfolio at SREG, sales and traffic at Francesca’s have been very strong. Their numbers are up over 100% from the previous year.
Source: Francesca’s – Press Release
Photo Credit: About Us – Francesca’s
francesca’s® is a specialty retailer which operates a nationwide-chain of boutiques providing customers a unique, fun and personalized shopping experience. The merchandise assortment is a diverse and balanced mix of apparel, jewelry, accessories and gifts. Today, francesca’s® operates approximately 702 boutiques in 47 states and the District of Columbia and also serves its customers through francescas.com. For additional information on francesca’s®, please visit www.francescas.com.