Women's specialty retailer Francesca's Holdings Corp. (FRAN) said Monday it has terminated the employment of Chief Financial Officer Gene Morphis. The company said Controller Cynthia Thomassee will serve as interim CFO while it conducts a search for a new CFO.
The employment termination came after Morphis was found improperly communicating company information through social media. This came to light after an investigation was conducted with the assistance of outside counsel on the incident that occurred on Friday.
"We acted immediately on Friday afternoon when we first became aware of the matter and have moved swiftly to replace Mr. Morphis based on the findings of the investigation. We appreciate Cindy stepping into the CFO role on an interim basis as we conduct a search for a permanent replacement," Chairman Greg Brenneman said in a statement.
Thomassee has most recently served as Francesca's Controller since 2007 and as vice president of accounting since 2010.
Meanwhile, Morphis has served as Francesca's CFO since October 2010. He came to Francesca's after serving as CFO of David's Bridal from March 2006 to September 2010. Prior to that, he served as the CFO of The Rowe Companies from 2002 to March 2006.
Morphis also served as CFO of ClientLogic from 1999 to 2001, CFO of Stream International, Inc. from 1995 to 1999, and as executive vice president and CFO of CVS Caremark Corp. from 1992 to 1995. He also held various executive positions at Zales Corp., American Woodmark and Holiday Inns.
"Francesca's has delivered consistent, high-quality results for customers and public investors. We are disappointed by this situation but we expect our executives to comply with all Company policies," Brenneman added.
Additionally, the company raised its earnings guidance for the first quarter to a range of $0.17 to $0.18 per share from the prior forecast of $0.14 to $0.15 per share. It also anticipates same-store sales to be above its prior outlook of high-single-digit increase.
On average, 10 analysts polled by Thomson Reuters expect the company to report earnings of $0.15 per share for the first quarter. Analysts' estimates typically exclude special items.
Houston, Texas-based Francesca's, which debuted on the Nasdaq in July 2011, offers a diverse mix of apparel, jewelry, accessories and gifts for women aged 18 to 35 years, and opened its first boutique in 1999.
Francesca's is majority-held by private-equity firm CCMP Capital Advisors Llc, which in February 2010, acquired a controlling interest in it. Even after the IPO, CCMP continues to hold a 65 percent stake in the company.
FRAN closed Friday's regular trading session at $24.02, down $3.55 on a volume of 5.70 million shares.
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