Thursday, June 6, 2013

Investopedia: Growing Pains For Francesca's Holdings

Investors in growth stocks often like to imagine that the sheer growth potential of the company in question can overpower any adverse macro trends that may be impacting the industry. Sometimes that's true, but more often it's the case that these macro trends produce at least some noticeable headwinds. That seems to be the case for Francesca's Holdings (Nasdaq:FRAN), where the oft-cited weather issues in the spring of this year impacted even this small, growing retailer. As a somewhat expensive and heavily shorted retailer, it's not altogether surprising that pre-market trading points to a rough day for the shares.

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