Categories Consumer, Earnings

Vince Holding posts wider loss in Q1, reaffirms FY19 outlook

Vince Holding Corp. (VNCE) reported a wider loss for the first quarter of 2019, due to higher costs and expenses as well as an increase in other expense. The luxury apparel designer continued to focus on its direct to consumer business through retail expansion and enhancements to its e-commerce channel. The company reaffirmed its fiscal 2019 net sales and operating income guidance.

Net loss was $7 million or $0.60 per share, wider than a loss of $5.6 million or $0.49 per share in the previous year quarter. The latest quarter included $1.4 million of strategic consulting costs. Adjusted earnings

Net sales rose by 1.1% year-over-year to $55.1 million. Wholesale segment sales decreased 4% on primarily due to the shift in the timing of seasonal wholesale shipments, while direct-to-consumer segment sales grew 6.7%. Comparable sales increased by 1.1%, including e-commerce sales, primarily due to an increase in average dollar sale.

Photo Courtesy: Vince / Facebook post

Looking ahead into fiscal 2019, the company continues to expect net sales in the range of $290 million to $300 million and operating income in the range of $7 million to $9 million. Capital expenditures are still anticipated to be in the range of $4 million to $4.5 million.

The company believed that wholesale women’s business continues to resonate with consumers, which is driving further market share gains. Vince Unfold subscription business is gaining traction and remained excited about other opportunities including a test by Microsoft (MSFT), expected to launch in the coming months, presenting Vince in the windows of select stores.

The improved weather and early shipments timing drove the increased momentum the company is seeing in its business. The company is gaining momentum overall with merchandising strategies and over the long term the elevated focus on marketing leaving the company well positioned to deliver profitable growth over the long term.

Also read: RH Q1 earnings results

The company ended the quarter with $45.6 million of borrowings under its debt agreements. The company lowered borrowings under its debt agreements since the same period last year by $5 million, primarily due to $4.2 million of net repayments to the term loan facilities. Capital expenditures for the quarter totaled about $0.5 million.

Shares of Vince Holding ended Thursday’s regular session up 6.40% at $12.80 on the NYSE. The stock has fallen over 6% in the past year and over 3% in the past three months.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight