Francesca’s Holding Corp (FRAN) was founded in 1999 and it’s headquarter is situated in Houston, Texas. Francesca’s Holdings Corp mainly has a chain of retail boutiques in the United States. The Company has a specialty in being a retailer that operates a nation-wide chain of boutiques providing customers royal shopping experience. Their merchandise includes a huge collection of apparel, jewelry, accessories. According to the latest reports Francesca operates approximately 702 boutiques in 47 states and they also deliver to the customers through their official website.
The Reason of the Francesca’s Holding Corp (FRAN)’s Stock Rise
As the Company decided to reopen its boutiques, its cash position has jumped to approximately $21 million according to the reports of June 12, 2020, from $14.3 million dated May 2, 2020. This increase has shown a great sign for the company. It was only possible due to the Company’s efforts to make high sales and fabricating the already existing inventory. The most possible reason for increased stocks of the company is the fact that the company has aggressively reduced the costs of the items making it more affordable to their customers. This enabled a smooth cash flow in the market. Moreover, the company expects to get a refund of $10.7 million under the privilege of the Corona Aid and Relief Security act.
The COVID-19 pandemic has resulted in the closing of all of the company’s 702 boutiques for a short period. As the situation improved a bit the Company have started to reopen its boutiques at various locations. As of now, a total of 593 boutiques have been reported, which are back in operations with all the major precautions under the guidance of the local regulations. This is a major reason in increment in their stocks.
What’s next for Francesca’s Holding Corp (FRAN)?
The Company has reportedly said to partner with a software company to build a mobile app that will enable the people to order the desired product from the comfort of their backyard, which can prove more sales for the company.
