VINCE EXCEEDS FISCAL 2015 GUIDANCE
Contemporary fashion brand Vince Holding Corp. has announced that its preliminary net sales are expected to be between $300.5 million and $302.5 million and earnings per share (EPS) is expected to be between $0.12 and $0.14 for the fiscal year ended January 30, 2016.
On an adjusted basis, preliminary diluted EPS is expected to be between $0.32 and $0.34. Adjusted EPS excludes a $10.3 million net charge associated with the write-down of excess inventory and aged product to expected net realizable value incurred in the second quarter of Fiscal 2015, subsequent recovery of inventory in each of the third and fourth quarters, and $2.7 million in net management transition costs.
“We were pleased to see our fiscal 2015 preliminary net sales exceed our most recent guidance,” said Brendan Hoffman, CEO. “Our results benefited from the work we have done with our wholesale partners to reduce initial orders which led to higher full-price sales and reduced markdown allowances. We also saw favorable response to some of our pre-Spring product contribute to the better-than-expected sales and margin results. While we have begun to make initial progress in recapturing the Vince DNA, we believe that our initiatives will begin to yield more meaningful results later in the year with our Fall 2016 delivery which will be our first collection designed and merchandised by our founders since their return. Overall, while we still have a lot of work in front of us, we remain confident that the plans we have in place will position us for sustainable, profitable growth over the long-term.”
Reported estimated results for Fiscal 2015 are preliminary and remain subject to adjustment until the filing of the company’s Annual Report on Form 10-K with the SEC. The estimated results for Fiscal 2015 are unaudited. In addition, adjusted EPS is a non-GAAP financial measure, and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
“Looking ahead, we will continue to make investments in talent as well as other strategic initiatives designed to enhance the product and further strengthen our brand and market leadership position,” added Hoffman. “While we anticipate that these investments will drive improved financial performance in late 2016, we are positioning ourselves for a difficult first half of the year as the retail industry remains challenging and the product assortment will not reflect our go-forward vision for the brand until the latter part of the year.”