Shares of Francesca’s (FRAN) have been rallying, up over 150% in just two days after the company posted a significantly better than anticipated second quarter, marked by a 5% decline in comparable sales, ending a trend of 7 straight quarters of double digit comp declines. Without question, second quarter results were far better than I anticipated given the recent management turnover, poor balance sheet, and stale inventory.
Overall, the second quarter looks like an unexpected positive. However, I do not believe second quarter results warranted a more than doubling of the stock price.