Vince Holding swings to profit in fiscal 4Q thanks to robust online clothing sales
Wednesday, 10 April 2019 Vince Holding Corp (NYSE:VNCE) swung to a profit in its fiscal fourth quarter as the high-end clothing company reported robust online sales. In the three months until February 2, the New York company posted adjusted earnings per share of $0.20 compared to an adjusted loss of $0.20 per share in the year-ago quarter. Its net sales also rose 4.2% to $77.8 million, up from $74.6 million in the year-ago period. Another bright spot was its direct-to-consumer comparable sales, which were also up 3.1% on a 13-week basis. READ: Vince Holding rallies as luxury retailer’s quarterly net income nearly doubles In a statement, CEO Brendan Hoffman attributed Vince’s success to the opening of six new stores and solid e-commerce sales. “We streamlined our wholesale business to focus on key partners where we achieved strong retail door sell-through,” Hoffman said. “We successfully opened 6 new stores and drove double-digit e-Commerce growth, we launched a subscription rental program and received accolades on our women’s collections throughout the year.” Looking ahead, Hoffman is focused on growing Vince’s direct-to-consumer business and increasing its presence internationally. Vince now expects 2019 sales to fall between $290 million and $300 million. Its operating income, meanwhile, is expected to hit $7 million to $9 million, including an estimated $1.5 million associated with strategic consulting fees. Capital expenditures of $4.0 million to $4.5 million are also expected. Vince which designs and sells luxurious cashmere sweaters, silk blouses, leather and suede jackets, handbags and shoes has a wholesale and direct-to-consumer business model. It sells its fashion brands directly to consumers through its specialty retail stores, outlets and website, while it also sells in bulk to other wholesale department stores. Vince operates 59 stores, including 45 company-operated full-price retail stores and 14 company-operated outlets as well as its online site vince.com. The company is headquartered in New York, but operates a design studio in Los Angeles. Vince shares closed up 3% to hit $13.81 Wednesday. Contact Ellen Kelleher at [email protected]
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