The Company's Board of Directors authorized a $100 million share repurchase program to commence immediately.
This authorization has no expiration date. The specific timing and amount of the repurchases will be dependent on market conditions, securities law limitations and other factors.
In connection with the repurchase program, the Company plans to conduct open market purchases, adopt one or more plans pursuant to the provisions of Rule 10b5-1, and such other strategies as would be appropriate under the circumstances, consistent with the Securities and Exchange Act of 1934.
Neill P. Davis, Chief Executive Officer, commented, "We have built a very profitable business model which generates a considerable amount of free cash flow even after funding all of the investments required to fuel this growth.
“We will repurchase shares when our cash on hand, free cash flow, and debt capacity exceed the investment and other strategic needs of our business, and in our view, when the stock is trading below its intrinsic value. The share repurchase authorization reflects confidence in our growth plans as well as our commitment to return excess capital to our shareholders thereby enhancing shareholder returns."
About Francesca's Holdings Corporation
francesca's is a growing specialty retailer with retail locations designed and merchandised to feel like independently owned, upscale boutiques providing customers a fun and differentiated shopping experience. The merchandise assortment is a diverse and balanced mix of apparel, jewelry, accessories and gifts. Today francesca's operates 440 boutiques in 44 states.