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.
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.
Home improvement is one of the top activities that kept Americans busy during the pandemic, a trend that enabled The Home Depot, Inc. (NYSE: HD) to beat the crisis and
Department store chain Target Corporation (NYSE: TGT) reported a sharp decline in adjusted earnings for the second quarter of 2022, despite an increase in net sales. The bottom line also fell
Amazon.com, Inc. (NASDAQ: AMZN) became an inspiration for other players in the eCommerce sector as the online retailer successfully channelized its resources to tap into the spike in demand for