Francesca's Holdings Launches Share Buyback Program
Sep 4th 2013 9:05PM
Updated Sep 4th 2013 9:06PM
Concurrent with the release of disappointing quarterly earnings, Francesca's Holdings is attempting to boost the value of its stock through a repurchase initiative. The company's board has authorized a buyback program for up to $100 million worth of stock. It is effective immediately.
The buybacks will be effected through various means, including open-market purchases and "such other strategies as would be appropriate under the circumstances."
In the press release announcing the move, Francesca's Holdings quoted CEO Neill Davis as saying that the firm has the financial muscle to effect the program. "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," he said.
At present, Francesca's Holdings has just more than 44 million shares outstanding. Its stock most recently closed at $17.79 per share.
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