Francesca’s Shows Strong Relative Earnings Compared to Its Peers
September 9, 2015, US Equity Market Update
Comparison of Francesca’s Holdings with its competitors
Francesca’s Holdings’ gross profit margin in 2Q15 is 47.44%, higher than its peers Zumiez (ZUMZ) at 31.83%, Express (EXPR) at 33.08%, and Urban Outfitters (URBN) at 33.34%. The current ratio of Francesca’s Holdings (FRAN) is 3.84. The 2Q15 current ratio for Zumiez (ZUMZ), Express (EXPR), Urban Outfitters (URBN), and Ann Inc. (ANN) is 3.34, 1.63, 2.64, and 1.86, respectively.
Based on these results, Francesca’s Holdings Corporation has outperformed its competitors based on gross profit margin and current ratio in 2Q15.
ETFs that invest in Francesca’s Holdings
The SPDR S&P Retail ETF (XRT) invests 0.88% of its holdings in Francesca’s Holdings Corporation. This ETF tracks a broad-based, equal-weighted index of stocks in the US retail industry.
The PowerShares S&P SmallCap Consumer Discretionary Portfolio ETF (PSCD) invests 0.58% of its holdings in Francesca’s Holdings Corporation. This ETF tracks a cap-weighted index of consumer staples stocks selected from the S&P SmallCap 600.
The First Trust Small Cap Growth AlphaDex ETF (FYC) invests 0.34% of its holdings in Francesca’s Holdings Corporation. FYC tracks a quant-driven index that selects stocks from the S&P SmallCap 600 Growth Index in an effort to outperform the market.
Comparison of ETFs that invest in Francesca’s Holdings
The year-to-date price movements of Francesca’s Holdings, the SPDR S&P Retail ETF (XRT), the PowerShares S&P SmallCap Consumer Discretionary Portfolio ETF (PSCD), and the First Trust Small Cap Growth AlphaDex ETF (FYC) are -31.14%, -1.46%, 1.48%, and 1.26%, respectively.
The PE (price-to-earnings) ratios of Francesca’s Holdings, the SPDR S&P Retail ETF (XRT), the PowerShares S&P SmallCap Consumer Discretionary Portfolio ETF (PSCD), the First Trust Small Cap Growth AlphaDex ETF (FYC) are 15.75x, 27.12x, 26.06x, and 35.51x, respectively.
Based on price movement and PE, these ETFs have outperformed Francesca’s Holdings Corporation (FRAN).
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