VINCE RELEASES MIXED FINANCIAL RESULTS IN MIDST OF TURNAROUND

Apparel maker and retailer Vince has released its fourth quarter and fiscal year 2015 results.

For the fourth quarter ended January 30, 2016, net income was $1.8 million, or $0.05 per diluted share, compared to net income of $10.5 million, or $0.28 per diluted share, for the fourth quarter of fiscal 2014. Net sales decreased 13.6% to $81.8 million from $94.7 million in the fourth quarter of fiscal 2014. Comparable store sales increased 10.7%, including e-commerce sales. Gross profit was $41.0 million, as opposed to $45.8 million in the fourth quarter of fiscal 2014.

For the fiscal year ended January 30, 2016, net sales decreased 11.1% to $302.5 million from $340.4 million during fiscal year 2014. Comparable store sales increased 4.2% over the prior year period, including ecommerce sales. Net income was $5.1 million, or $0.14 per diluted share, compared to net income of $35.7 million, or $0.93 per diluted share, in fiscal 2014.

Looking ahead to fiscal 2016, the company expects total net sales between $290 million and $305 million, including revenues from six new retail stores and comparable sales growth inclusive of ecommerce sales in the flat to low-single digit range. Sales are predicted to decrease in the mid-to high-single digit range for the first half of the year and to increase in the low-to mid-single digit range in the second half of the year as compared to the same prior year periods.

“While 2015 was a difficult year for the business, we took important measures toward positioning the company for sustainable long-term growth,” said CEO Brendan Hoffman, who took on the position in October. “Our first priority was product, where we are making significant headway in recapturing the Vince DNA with the return of our founders and our enhanced design team. The initial response to our Fall collection has been extremely positive, with our wholesale partners and retail team excited to see the return of the signature Vince look and feel in a fresh and relevant way.”

As for 2016, Hoffman added: “We are prepared for a tough first half, as we strategically reduce shipments and receipts while we reset the product assortment. While the pullback in deliveries is expected to impact our sales results in the short term, we believe this is a necessary step for the long term health of the brand. We look forward to the holiday season when we expect to see the new product line drive a turn in our business. In the meantime, we are carefully managing our inventory levels and diligently controlling costs while making strategic investments to support our business for the long term. Overall, while we still have a long road ahead of us, but we believe that the initiatives we have in place will enable us to achieve the full potential of the Vince brand.”