Vince sees increased sales, comps in 2018 to end "pivotal year"

today Jun 14, 2019
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Vince Holdings posted improved results on Wednesday, as the U.S. luxury apparel and accessories group saw net sales lift on strong comparable sales in both the fourth-quarter and full-year 2018.

Vince Holdings

For the three months ending February 2, Vince saw net sales increase 4.2% to $77.8 million, as compared to $74.6 million in the same period last year. Direct-to-consumer comparable sales were up 3.1% during the quarter, and gross margin rate increased 160 bps to 47.1% of sales.

Vince's earnings took a hit, however, with net income coming in at $0.7 million, or $0.06 per diluted share, compared to $74.5 million, or $6.41 per diluted share.

In a press release on Wednesday, the company said it managed to deliver on its yearly guidance, adding 2018 was a "pivotal year."

"We streamlined our wholesale business to focus on key partners where we achieved strong retail door sell through, we successfully opened 6 new stores and drove double digit e-commerce growth, we launched a subscription rental program and received accolades on our women’s collections throughout the year," said Brenda Hoffman, CEO of Vince Holdings.

For the full-year 2018, Vince saw sales lift 2.3% to $279 million from $272.6 million. Vince's wholesale segment decreased 3.9% to $159.6 million and direct-to-consumer segment sales increased 12.1% to $119.3 million.

Comparable store sales increased 10.7%, including e-commerce sales. Like Vince's fourth quarter, the company witnessed a full-year net loss, with profit down to $2 million, or $0.17 per share, compared to net income of $58.6 million, or $7.70 per diluted share in 2017.

Looking ahead, Vince expects 2019 sales to fall between $290 million and $300M. Operating income is seen landing in a range of $7 million to $9 million.

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