Vince posts solid profit gain in third quarter
NYC-based Vince Holding Corp. reported $8.0 million in third-quarter net income, or $0.67 per diluted share, on Thursday, up from $6.8 million, or $0.57 per diluted share, in the prior-year period, as increased sales and improved margins offset the effect of costs related to the company’s recent acquisition of the Rebecca Taylor and Parker brands.
Excluding costs related to the acquisition, Vince’s adjusted net income for the third quarter ended November 2, 2019, was $8.7 million, or $0.73 per diluted share
The company’s net sales for the quarter totaled $86.4 million, up 3.4% from $83.5 million in the third quarter of fiscal 2018. Vince’s direct-to-consumer segment did particularly well, posting a 15.6% increase in sales totaling $35.3 million and a 9.5% increase in comparable sales.
As of Q3 2019, the company operates 63 stores, four more than in the third quarter of fiscal 2018.
In the wholesale segment, sales fell 3.6% to $51.1 million, as compared to $53.0 million in the same period in the previous year.
“Our strong performance in the third quarter further demonstrates the continued momentum in the Vince brand,” said Vince CEO Brendan Hoffman in a release. “As we look ahead, we remain focused on advancing our strategic initiatives, which include growing our direct-to-consumer business through the expansion of our store base globally, driving market share gains within the wholesale channel, testing new product categories, and refining our marketing efforts to drive traffic and conversion.”
Year to date, Vince’s sales rose 5.8% to $212.9 million, compared to $201.2 million in the first three quarters of fiscal 2018. Net income for the period was $2.0 million, or $0.17 per diluted share, up from a loss of $2.7 million, or $0.23 per diluted share.
Currently, Vince is maintaining its full-year outlook for fiscal 2019, but intends to announce its updated expectations – taking into account the effect of the Rebecca Taylor and Parker acquisitions – by the end of January 2020.
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