FRAN Falls on Dismal Financial Results, Bankruptcy Buzz

The equity is down 62.7% this year

Deputy Editor
Sep 15, 2020 at 10:55 AM
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Francesca's Holdings Corporation (NASDAQ:FRAN) is plummeting after the boutique chain announced its second-quarter fiscal year 2020 financial results. Losing nearly half its value this year, the company posted a second-quarter net loss of $17.2 million and a 29% sales decrease. Franscesca's is now exploring strategic alternative options, one of which is bankruptcy, as it raises going-concern doubts. At last check, the stock is down 26% at $3.75. 

FRAN has been slowly sinking deeper into penny stock territory. In fact, yesterday was the equity's only daily win in eight days of trading.The stock did see a volatile July, but has since consolidated below the $6 level. Now the equity sports a 62.7% year-to-date deficit, and just breached former support at the 80-day moving average for the first time sine June.

Looking at the retail stock's short interest data, these bearish bets dropped roughly 10% in the last reporting period. The number of shares sold short still accounts for 31.6% of the stock's available float, however. Today's dip could send even more short sellers FRAN's way too, which could push the security even further down the charts. Also worth noting, FRAN has been placed on the "short sell" list today. 

 

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