Vince Holding (VNCE) reported earnings on Thur 7 Dec 17 (b/o)

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** charts after earnings **

 

Vince Holding reports Q3 results with comps +4.4% including e-commerce 

• Q3 net income +3% to $3.5 mln. EPS was $0.41 for the third quarter of fiscal 2017, based on 8.6 million diluted weighted average shares outstanding. This compares to $0.68 per diluted share, based on 4.9 million diluted weighted average shares outstanding for the third quarter of fiscal 2016, on a reverse split adjusted basis.
• Net sales increased 4.1% to $79.1 million from $76.0 million in the third quarter of fiscal 2016. Wholesale segment sales increased 3.5% to $53.0 million, primarily driven by an increase in off-price sales. This was partially offset by the expected reduced sell-in to the full-price wholesale channel. Direct-to-consumer segment sales increased 5.3% to $26.1 million compared to the third quarter of fiscal 2016. Comparable sales increased 4.4%, including e-commerce sales, due to an increase in average unit retail. Gross profit was $36.7 million, or 46.4% of net sales, compared to gross profit of $38.0 million, or 50.0% of net sales, in the third quarter of fiscal 2016.
• Net inventory at the end of the third quarter of fiscal 2017 was $51.4 million compared to $34.4 million at the end of the third quarter of fiscal 2016. The increase in net inventory was primarily driven by the timing and growth of off-price shipments.
• "As we look ahead, we will work to drive continued momentum in our direct-to-consumer business as well as to execute a more focused and profitable wholesale business. We plan to accomplish this by further refining our merchandise offering, investing in marketing programs with a focus on building brand awareness and deepening customer engagement, and growing our retail and eCommerce presence. Overall, we are excited about the inflection points in our business and we believe we are on the right track to deliver sustainable profitable growth over the long term."