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

ADBE Earnings: Adobe reports higher Q2 earnings; results beat estimates

Design software maker Adobe Inc. (NASDAQ: ADBE) on Thursday reported an increase in second-quarter 2024 revenue and earnings. The results also topped expectations. Second-quarter revenues came in at $5.31 billion,

Dollar Tree (DLTR): A look at the discount retailer’s growth initiatives at its namesake banner

Shares of Dollar Tree, Inc. (NASDAQ: DLTR) were down over 1% on Thursday. The stock has dropped 24% year-to-date. The company delivered sales and GAAP earnings growth for the first

Key highlights from Signet Jewelers’ (SIG) Q1 2025 earnings results

Signet Jewelers Limited (NYSE: SIG) reported first quarter 2025 earnings results today. Sales decreased 9.4% year-over-year to $1.5 billion. Sales were down 9.6% on a constant currency basis. Same-store sales

Add Comment
Viewing Highlight