Fed Chair Decision Boosts Markets
- By Omar Venerio
U.S. stocks are going to open in positive territory with the main indexes trading higher after the Senate Banking Committee approved Jerome Powell to take over as chair of the Federal Reserve.
Shares of Francesca"s Holdings Corp. (FRAN) drag down in pre-market session, on the back of the company posting its financial results for the third quarter of its fiscal 2017. For the quarter ended Oct. 28, the company reported a revenue decline of 11.4% to $105.8 million, while its net profit advanced to one cent per share, missing estimates by 3 cents.
Warning! GuruFocus has detected 2 Warning Signs with FRAN. Click here to check it out.
The intrinsic value of FRAN
Steve Lawrence, president and CEO, commented, "Our sales results were impacted by merchandise missteps that impacted our business throughout the third quarter. Additionally, comparable sales results were impacted by an estimated 425 basis points from hurricanes Harvey and Irma. We have taken aggressive action to get us back on track by refocusing on our core consumer and delivering on our mission of surprising and delighting every guest, every time with a unique, trend-right assortment at a great value."
The sales decrease was originated through an 18% decrease in comparable sales compared to a 7% increase in the same trimester of last year. The reason for the decrease was the decline in boutique traffic and conversion rates as the back-to-school assortment did not resonate with guests. Further, Hurricanes Harvey and Irma negatively impacted sales.
Gainers
o Micron Technology Inc. (MU)
o Autozone Inc. (AZO)
o Twenty-First Century Fox Inc. (FOX)
o eBay Inc. (EBAY)
o Advanced Micro Devices Inc. (AMD)
Losers
o Edison International (EIX)
o Foot Locker Inc. (FL)
o Kohls Corp. (KSS)
o Mattel Inc. (MAT)
o Freeport-McMoRan In.c (FCX)
Global Markets
The main European stock markets traded lower. The Spain"s Ibex jumped 0.04%, while the U.K."s FTSE lost 0.07%, Germany"s Dax closed down 0.4% and France"s CAC fell 0.48%.
In Asia, Hong Kong"s Hang Seng slipped 1.01%, India"s BSE Sensex lost 0.20%, Japan"s Nikkei slid 0.37% and China"s Shanghai declined 0.18%.
Disclosure : The author holds no positions in any stocks mentioned.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 2 Warning Signs with FRAN. Click here to check it out.
The intrinsic value of FRAN
