Guru Paul Tudor Jones (Trades, Portfolio) nearly tripled his stake in Francesca's Holdings Corp. (FRAN, Financial), adding 36,294 shares to his portfolio in the first quarter.
Francesca's Holdings was founded in 1999 after the company opened its first boutique in Houston. Since then the company has expanded to more than 600 boutiques across 48 states. Franceca's Holdings sells dresses, clothing, handbags, shoes, jewelry, accessories and home and gifts. The company's boutiques are designed and merchandised to deliver a warm and inviting atmosphere that creates the sense for its customers that they are shopping in an independently owned, upscale boutique.
Francesca's Holdings has a market cap of $425 million, a P/E ratio of 11.65, an enterprise value of $368.8 million, a P/B ratio of 3.42 and a quick ratio of 2.59.
According to GuruFocus, Francesca's Holdings has a 7/10 financial rating with no debt. The company also has a 9/10 profitability and growth rating according to GuruFocus with an operating margin of 14.18%. Francesca's Holdings' operating margin is rated above 89% of the 943 companies in the Global Apparel Stores industry.
Francesca’s stock price recently fell 29.31% to $10.54 after the company announced that Chairman and CEO Michael Barnes stepped down from the company for personal reasons. The former lead director Richard Kunes will take over active duties and serve as the interim chairman and CEO until a replacement is found.
Jones purchased Francesca’s at an average price of $17.94 per share prior to Barnes stepping down. With the company recently falling in price, now could be the best time to buy and hold the company at a significant discount to what Jones paid.
Francesca's Holdings is also traded in Germany
Jones is a Memphis, Tennessee native who founded Tudor Investment Corp., an asset management firm headquartered in Greenwich, Connecticut, in 1980. Jones also founded the Robin Hood Foundation in 1988, which is New York's largest poverty fighting organization. Robin Hood has raised more than $1.95 billion for goods and services to provide hundreds of soup kitchens, homeless shelters, schools, job-training programs and other vital services that give New York’s neediest citizens the tools to build better lives.
Below is a Peter Lynch chart for Francesca's Holdings.
Cheers to your investment success.
Disclosure:Â Author does not currently own any shares of this holding.
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