ICR Investors Conference January 13, 2016

Transcription

1 ICR Investors Conference January 13, 2016

2 Forward Looking Statements Certain statements made in this presentation will be forwardlooking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of Such forward-looking statements reflect the Company s current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to Risk Factors in our Annual Report on Form 10-Ks and Form 10-Qs filed with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement. 2

3 FY 2015 Quarterly Results Q Guidance 10% 5% 0% -5% -10% Quarterly Comp Sales Growth FY 2015 versus FY 2014 Q1-2% Q2 Q3 Q4-4% -7% -7% -6% 4% FY 2014 FY % 1% Recovery of positive comps began in the third quarter of FY Strong momentum continued through holiday season. $85.4 $95.0 $97.3 Quarterly Sales FY 2015 versus FY 2014 (in millions) $106.0 $103.7 $87.1 $107.6 Q1 Q2 Q3 Q4 $131.5 Raised our Q guidance. Net sales between $130M to $133M High-single digit increase in comparable sales EPS range of $0.32 to $0.34 FY 2014 FY 2015 Note: Q numbers in the above charts are the mid-point of the guidance provided. 3

4 Our francesca s Promise (Others call it a Mission Statement) Delight Every Guest, Every Time! 4

5 A Special Boutique Atmosphere Nationwide-chain of fashion boutiques and an e-commerce website at Merchandise offering spans Apparel, Jewelry, Accessories and Gift Core customer are 18 to 35 year-old women; although our assortment appeals to a broader demographic Delivery of new merchandise 5 days a week encourages frequent visits and ongoing customer engagement 5

6 Vision 2020 Invigorate Merchandising Focus and Drive Outlets Develop and Integrate Digital Ecosystem Long Term Sustainable Growth Cultivate and Expand Branding and Marketing Optimize Real Estate Differentiate and Personalize In-Boutique Guest Experience 6

7 Organization of the Future Developing a highly talented management team Recently added the following key hires o Laurie Hummel, EVP Chief Merchandising Officer o Erik Lautier, SVP DTC & Marketing o Bill Melvin, SVP Information Technology o Chuck Anderson, VP Real Estate Continue to invest in people and processes across the organization 7

8 Strategy #1 - Apparel Home and Gift Invigorate Merchandising Maintain a world class merchant team Drive the creative design process Optimize our supply chain Accessories Jewelry Drive a Best in Dress mentality Evaluate and evolve product mix and penetration 8

9 Exciting and Broad Assortment Seasonally fresh Innovative Value-oriented 9

10 Strategy #2 - Optimize Real Estate Real estate review and selection process Design and refine the optimal aesthetics for our boutiques Create and maintain effective, scalable processes to manage portfolio properties toward optimization Optimize construction process 10

11 Operate 900 boutiques over the next 5 years 400 mall; 400 non-mall and 100 outlets Update the look and feel of our existing boutiques through remodels Boutique Count Boutique count FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 As of 1/7/2016 Real Estate New Boutique Economics Net cash investment Net sales in the First Year Payback Period: Less than 12 months Compelling new boutique economics with payback period under 12 months 11

12 Strategy #3 - Differentiate and Personalize In-Boutique Guest Experience Best talent and engaged teams Leverage technology to enhance guest experience o Develop CRM initiative to personalize our communication with her o Resulting in personalized shopping experience for our guests Deliver reporting suite to measure performance Current Boutique Leadership Structure SVP Boutique Operations 9 Regional Directors 57 District Managers 622 Boutiques in 47 States and the District of Columbia Note: Boutique count is as of 1/7/

13 Our francesca s Promise Perfect Pairings All about her need Think Head to Toe Complete Outfit 13

14 Strategy #4 - Cultivate and Expand Branding and Marketing Build a 3-year roadmap for the brand Deepen understanding of our core guest to appropriately tailor branding and marketing initiatives Test, develop and evolve the DNA of the francesca s brand 14

15 Strategy #5 - Develop and Integrate the Digital Ecosystem Continue to build and strengthen the DTC organization Strong double digit sales growth over the next five years leading to increased penetration within the DTC channel. Develop the long-term operating parameters o Evaluate effectiveness of website design o Focus on the communication and selling processes 15

16 Strategy #5 - Develop and Integrate the Digital Ecosystem Use the website as a tool for branding and marketing Effectively communicate the brand through the website Enhance consumer engagement through website, , and social media channels Build an elevated social media interaction 16

17 Strategy #6 - Focus and Drive Outlets Develop our long-term outlet strategy. Determine proper merchandise offering for the outlet channel Optimize outlet allocation process to maximize sales results and margin Enhance pricing strategy Leverage different attributes to capitalize on traffic and guest needs to maximize results Create and execute marketing campaigns for outlet channel Philadelphia Premium Outlets Opened 2015 Charleston Outlet (South Carolina) Opened

18 ThankYou! #franlove 18