Things are looking up for Vince. The luxury apparel and accessories brand reported stellar results for the second quarter.
Net sales increased 13 percent to $71.4 million compared to $63.1 million in the second quarter of fiscal 2018. Wholesale segment sales increased 14.7 percent to $43.4 million as compared to $37.8 million in the same period last year due primarily to the acceleration of seasonal wholesale shipments.
Direct-to-consumer segment sales increased, too, up 10.6 percent to $28 million compared to the second quarter of fiscal 2018. Comparable sales increased by 7.1 percent, including e-commerce sales, primarily due to an increase in transactions and average dollar sale.
Gross profit was $34.7 million, or 48.7 percent of net sales, compared to gross profit of $27.7 million, or 43.9 percent of net sales, in the second quarter of fiscal 2018. The 480 basis point increase in gross margin rate was primarily due to product mix, efficiencies in the product development cycle, and sourcing initiatives.
“We were very pleased with the exceptional top and bottom-line performance in the second quarter reflecting double-digit sales growth in both our direct-to-consumer and wholesale channels,” said Brendan Hoffman, chief executive officer at Vince. “Our results are evidence that the multiple initiatives that we have been undertaking are coming together to deliver strong performance in all areas of the business.”
Hoffman continued: “We are excited about the momentum in our business as we continue to make progress across our strategic initiatives which include driving global expansion across our retail, e-commerce and wholesale channels as well as increasing brand awareness globally. We believe that we are well-positioned within the luxury market to deliver consistent long-term profitable growth and enhance shareholder value.”
The company now expects net sales for fiscal 2019 to be between $295 million and $305 million. This compares to net sales of $279 million in fiscal 2018.