Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Francesca's Holdings Shares Plummeted

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Francesca's Holdings (Nasdaq: FRAN  ) sank as much as 18% today after CEO and co-founder John De Meritt announced plans to retire from the company.

So what: Oddly enough, the announcement came as part of a stellar earnings report that included a whopping 20.7% jump in same-store sales and beat estimates on both top and bottom lines. De Meritt will be stepping down at the end of the year to pursue "personal endeavors," and investors seemed concerned that new management may not be able to maintain the same levels of growth for this high-priced stock.

Now what: The sharp drop in the stock price seems like an overreaction. In what was a difficult quarter for many other retailers, Francesca's strong results show that it should have a bright future ahead. Incoming CEO Neill Davis has served on the board since 2007 and brings 15 years of retail experience with Men's Wearhouse to the table. As we've seen with companies from Apple to Costco, strong brands tend to experience few problems when it comes to leadership changes.

Don't miss any news on Francesca's Holdings. Stay connected by adding the company to your Watchlist

Fool contributor Jeremy Bowman holds no positions in the companies in this article. The Motley Fool owns shares of Costco Wholesale and Apple. Motley Fool newsletter services have recommended buying shares of Costco Wholesale and Apple and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2007247, ~/Articles/ArticleHandler.aspx, 10/22/2016 7:42:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
FRAN $16.01 Up +0.06 +0.38%
Francesca's Holdin… CAPS Rating: ***