Francesca's shares sink in premarket after profit warning, CEO departure

Francesca's Holdings Corp. shares fell 23% in premarket trading after the company issued a warning on Tuesday that first quarter results will fall below expectations, and announced the departure of the company's chief executive officer. The retailer expects earnings per share of 17 cents, below the FactSet consensus of 20 cents. And first-quarter same-store sales are expected to increase of 2%, below the FactSet consensus of 5.4%. The company will announce first-quarter results on June 9. Francesca's Chief Executive Michael Barnes has also resigned for personal reasons, effective immediately. The company's former lead director, Richard Kunes, will serve as interim CEO and president while the search for a permanent replacement is underway. Francesca's shares are down 14.4% for the year to date while the S&P 500 is up 1.1% for the same period.

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