Wedbush Securities Sees Traction in Non-Apparel Categories for Francesca's Holdings Corp.

In a report published Thursday, Wedbush Securities analyst Morry Brown reiterated a Neutral rating and $17.00 price target on

. In the report, Wedbush Securities noted, "Progress on inventory and within non-apparel categories; apparel remains a challenge. We view the following points as most noteworthy from FRAN's 4Q results: (1) inventory tracking well below sales for the first time since 2012, (2) gifts and accessories performing well, with positive comps, (3) jewelry comps modestly negative, and best performance since 2Q13 and (4) apparel remains the most challenged segment of the company's business. These trends have continued into 1Q. We believe the company is taking the appropriate near-term steps; however, we believe some investors were disappointed in a lack of longer-term initiatives (e.g., cost cuts or slowing store growth). We remain NEUTRAL as the market appears to fairly price in the company's improved operating metrics in 2015." Francesca's Holdings Corp. closed on Wednesday at $15.68.