VINCE REPORTS TOUGH SECOND QUARTER
Contemporary sportswear brand Vince Holding Corp. has reported financial results for the second quarter of fiscal 2016 ended July 30, 2016.
Net loss was $2 million, or $0.04 per share, compared to net loss of $5 million, or $0.14 per share, for the second quarter of fiscal 2015. Net sales decreased 24.1 percent to $60.7 million from $80 million in the second quarter of fiscal 2015. Comparable sales decreased 18.7 percent, including e-commerce sales.
However, gross profit was $27.4 million, or 45.1 percent of net sales, as opposed to $20.8 million, or 26 percent of net sales, in the second quarter of fiscal 2015.
“Our second quarter results were largely in line with our expectations,” said Brendan Hoffman, the company’s CEO. “As we transitioned our product to fall, we flowed fewer styles into the wholesale channel as well as our own retail stores, which contributed to the reduction in sales. Our fall collection has just recently been set on the selling floor and we are very pleased with the presentation.”
As for Fiscal 2016, diluted EPS is still expected to be $0.00 to $0.06. Total net sales are still expected to be between $290 million and $305 million, including revenues from six new retail stores and comparable sales growth inclusive of e-commerce sales in the flat to low-single digit range.
“As we have said in the past, we look forward to the holiday season, at which time our new vision will be fully reflected in our assortment,” added Hoffman. “Overall, we believe that we are on track to achieve our net sales and diluted EPS targets for fiscal 2016.”
