FRAN June 2015 Investor Presentation

8/20/2019 FRAN June 2015 Investor Presentation

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Jefferies Global Consumer ConferenceJune 2015


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Forward Looking Statements

Certain statements made in this presentation are “forward-lostatements” made pursuant to the safe-harbor provisions of t

Securities Litigation Reform Act of 1995. These forward-lookistatements reflect the Company’s current expectations or belconcerning future events and are subject to various risks anduncertainties that may cause actual results to differ materiallyexpected results. For a discussion of these and other risks anuncertainties that could cause actual results to differ materialthose contained in our forward-looking statements, please re“Risk Factors” in our Annual Report on our Form 10-K and Forfiled with the Securities and Exchange Commission on March and June 10, 2015, respectively. We undertake no obligation publicly update or revise any forward-looking statement.


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Our

fr n es ’s

® Promise

Delight Every Guest, EveryTime!


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• An efficient boutique format with anaverage size of 1,355 square feet per

boutique (1)

• Customized fixtures designed toshowcase our broad assortment

• Located in malls, lifestyle centers, powercenters and urban / street hot spots

• Frequent deliveries of new merchandiseappeal to the regular shopper andencourages ongoing interaction

• Product offerings across Apparel,Jewelry, Accessories and Gift

A Differentiated Retail Atmosphere

(1) As of May 2, 2015


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Our Custo

• Primary customer - wbetween 18 to 35 yea

• Our product assortmea broader demograph

– 12 to 17 years of age

– 36 to 45 years of age

• Cross-generational sh

Sweet Spot

18 to 35 years old

12 to 17

years old36

yea


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Exciting and Broad Assortment Stra

Apparel

48%

Jewelry

22%

Accessories

17%

Gifts

13%

Merchandise Sales by Category

Fiscal Year 2014

Dresses

Handbags

$34 - $48

$20 - $68

Fashion Tops

Jewelry Shoes

$12 - $38 $18 - $89

$18 - $38

Fashion Bottoms

$34 - $44

Scarves

$18 - $22


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Exciting and Broad Assortment Strat

Valu

Seasonally fresh

Innovative


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Providing an Excellent Customer Experienc

• Boutique leadership organization aligns talentand field operations

– Allows for a more consistent experience across theboutique base, while maintaining the individuality ofeach location

• Focused on improving the customer experience

in boutiques – Leads to increased units per transaction and

conversion rates

Head ofBoutique

Operation

9 Regio

57 Distr

589 BoutiqueStates and D

Columb

Boutique Leadership S

(1) As of May 2, 2


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Perfect Pairings

Allabout“her”need

ThinkHeadtoToe– CompleteOutfit

Our fr n es ’s

®

Promise


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• Significant boutique gro

• Substantial runway left

• Operating initiatives unincrease boutique prod

• Opportunity to grow cosales through improvedstrategy and optimized experience

A Powerful Growt


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Boutique Growth Opportunity

• Versatile retail concept that works in avariety of retail venues and marketsizes

• Compelling new boutique economicswith average payback period under 12months

Boutique Count

207

283

360

451

539

589

Boutique Count

2010 2011 2012 2013 2014 Q1 2015

AverPaybPeri

Less thmon

Average netcash

investment

$152,000

Average netsales in the

first year

$636,000

New Boutique Econom

FY 2013 Openings

• 2/3 of the way to goal oboutiques

• Significant future oppo

outlet channel


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DTC Growth Opportunity

• Significant opportunity to grow

direct-to-consumer business overthe next several years

• Creating a digital ecosystem tosupport and work in collaboration

with core boutique business – Enhanced brand messaging online

– Continuous consumer engagementthrough website, email, and socialmedia channels


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Comp Boutique Sal

Opportunit

• Enhanced merchandise

expected to drive comp – Increased promotional

enhance merchandise mmaintain appropriate in

– Improved inventory macapabilities will enhanc

chase product in a time


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Financial Flexibility

• Positive cash flows from operationsdespite negative comps over the past

two years

• Cash balance of $46M at the end ofQ1 2015

• No debt and unused revolving creditfacility of $75M

• Have used cash flows of $60M forshare repurchases since Q3 2013

Financial strength for investments to support future

$57.0$49.3

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

2012 2013

Cash from Operatio

(in millions)


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2015 Priori

• Improve comparable sa

• Enhance and grow our

• Formulate and execute outlet strategy

• Enhance processes for i

inventory managementstrategy

• Continue to attract, tramotivated boutique leaorganization and home


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Strategic Focus

Long-Term

Sustainable and

ProfitableGrowth

Marketing

Organization

Merchandise

Real EstateCapital

Structure

Expansion

OpportunitiesProcesses


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ThankYou

FR NLOVE

fr n es ’s

Documents

FRAN June 2015 Investor Presentation