Vince first quarter sales and earnings fall but meet expectations
Vince on Thursday reported its first quarter results that were in line with expectations despite decreases in net sales and an expanded net loss.
Net sales fell 14.2% to $58.0 million, with wholesale segment sales decreasing 20.9% to $35.4 million primarily due to the elimination of a summer delivery, and direct-to-consumer sales decreasing 1.0% to $22.6 million. Comparable sales, including e-commerce, also decreased 5.7%.
“As anticipated, our wholesale business was negatively impacted primarily due to the elimination of our summer delivery,” said Vince CEO Brendan Hoffman. “We saw sequential improvement in our direct-to-consumer business, led by ecommerce, and we are seeing this momentum continue into the second quarter.”
Hoffman added that the company strengthened its design and product development leadership, is focused on strengthening its direct-to-consumer business and optimizing its wholesale business.
Net loss for the quarter was $9.3 million, or $0.19 per share, compared to a net loss of $1.9 million, or $0.05 per share, in the previous year. Gross profit was $25.6 million, or 44.1% of net sales, which reflects decreased discounts, and SG&A expenses were $33.8 million, or 58.2% of sales, due to increased costs related to higher product development, marketing, and new stores costs.
In addition, operating loss was $8.2 million compared to $3.5 million in the prior year.
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