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.
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.
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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.
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