VINCE SUFFERS FURTHER LOSSES IN FIRST QUARTER
New York-based luxury sportswear and accessories brand Vince Holding Corp. has reported unaudited results for the first quarter of fiscal 2017 ended April 29, 2017.
Net loss was $9.3 million, or $0.19 per share, compared to a net loss of $1.9 million, or $0.05 per share, for the first quarter of fiscal 2016
Net sales decreased to $58 million from $67.6 million in the first quarter of fiscal 2016. Wholesale segment sales decreased 20.9 percent to $35.4 million, primarily due to a reduction in full-price orders as a result of the elimination of the Company’s summer delivery. Direct-to-consumer segment sales decreased 1 percent to $22.6 million compared to the first quarter of fiscal 2016. Comparable sales decreased 5.7 percent, including e-commerce sales, due to a decrease in average order value.
“Our first quarter results were largely in line with our expectations,” said CEO Brendan Hoffman. As anticipated, our wholesale business was negatively impacted primarily due to the elimination of our summer delivery. We saw sequential improvement in our direct-to-consumer business, led by ecommerce, and we are seeing this momentum continue into the second quarter.”
Commenting on the troubled brand’s future, Hoffman said: “Looking ahead, we will remain focused on strengthening our direct-to-consumer business as well as take steps to optimize our wholesale business as we look to engage consumers across channels. In addition, we have recently strengthened our design and product development leadership and are excited about the product refinements and planned brand enhancements we have underway. Overall, we believe the Vince brand remains strong and we are making progress toward driving improved performance.”
