Francesca's Holdings Corporation (NASDAQ:FRAN) Q2 2020 Earnings Conference Call - Final Transcript
Sep 15, 2020 • 08:30 am ET
Good morning. Welcome to Francesca's Holdings Corporation Second Quarter 2020 Earnings Conference Call. [Operator Instructions]
I will now turn the conference over to Cindy Thomassee to begin.Thank you.
Thanks and good morning everyone. We appreciate your participation this morning in Francesca's second quarter 2020 conference call. Earlier today we issued a press release announcing our second quarter financial results and exploration of strategic initiatives.
Please note the following discussion includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in today's discussion that address activities, events or developments that the company expects, believes, targets or anticipates will or may occur in the future are forward-looking statements.
The Company's actual results may differ materially from those projected in the forward-looking statements as a result of certain risks or other factors including those risk factors set forth in the Company's Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. All such statements speak only as of the date made and except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. As usual, a replay of today's conference call will be posted on our corporate website. We will begin to the call with comments from our CEO, Andrew Clarke.
I'll now turn the call over to Andrew.
Thanks, Cindy. Good morning and thank you for joining us for our second quarter earnings call. As the challenges created by COVID-19 persist, we continue to control what is within our control in order to navigate through this difficult period. As such we are managing our business to weather the short-term headwinds, as well as advancing the strategies we have put in place to drive long-term growth.
Our near-term priorities have been focused on first, the safety of our employees and customers. We continue to adhere to health and safety standards, the measures we began to employ in March in our corporate office distribution centers and our boutiques are still in place today.
Our corporate teams are slowly coming back to the office under strict guidelines to protect their well-being, including temperature checks, social distancing and mask. Second, we continue to drive sales and monetize inventory through our e-commerce business, as well as reopened boutiques. E-commerce sales grew 27% over last year in the second quarter. Inventory at the end of the quarter was down 26% over last year. We held a clearance sale at the last week of July, that helped us to end the quarter with substantially reduced clearance inventory equivalent to 45% less versus the same period last year. This leaves us in a healthy inventory position to start the new season.
With the continuation of work-from-home, as well as school-from-home this fall, we are leveraging our rapid supply chain to lean into categories that align with our customers' current lifestyle which I will speak to