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Francesca’s (FRAN) is a New Growth Stock

Francesca’s Holdings (FRAN) is a new name you need to know. The company has boutique stores for 18-35 year old women. The style is nice and casual. I think the company knows what women want.

What’s most impressive about FRAN is Francescas Fourth Quarter Financial Results. Here’s what I liked:

  • Sales increased 55% last quarter.
  • Same store sales jumped 15% (the most impressive number of this list).
  • EPS of $0.19 vs. $0.11 last year.
  • Gross margins increased slightly.

Right now, FRAN has a P/E of 37 and an estimated Long Term Growth Rate of 28%. The stock’s a little high to buy.

FRAN is a new listing. The stock IPO’d at $23 in July 2011. It was also $23 on March 7th, ran up into the earnings announcement (somebody probably leaked something), popped on the earnings news, and is $31 now.

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