Shares of Vince Holding Corp. rose 19.5 percent on the New York Stock Exchange Thursday after the fashion firm reported first-quarter results that beat both Wall Street’s earnings per share estimate and analysts’ sales estimate.
Vince shares ended Thursday’s trading session at $33.13 from a Wednesday close of $27.73.
For the three months ended May 3, net income was $1.4 million, or 4 cents a diluted share, against a net loss of $15.1 million, or 58 cents, a year ago. Wall Street was expecting 0 cents for the quarter. On an adjusted basis, taking into account the company’s initial public offering in November and related restructuring transactions last year, net income was $100,000 for the year-ago first quarter, or 0 cents a diluted share. Net sales rose 32.4 percent to $53.4 million from $40.4 million, beating analysts’ consensus sales estimate of $48.8 million.
The company said operating income for the quarter jumped 174 percent to $5.2 million from $1.9 million in the same year-ago period. Excluding transition costs connected with becoming a public company a year ago, operating income rose 64.1 percent for the current quarter, representing 9.7 percent of sales.
Jill Granoff, chairman and chief executive officer, said in a conference call to Wall Street analysts the company delivered double-digit growth across all distribution channels. Those channels include a sales gain of 29 percent in the wholesale segment, and a 41 percent increase in retail sales driven by an 11.1 percent comparable-store sales gain, six new stores and momentum from a Web site relaunch in February.
The ceo said the company expanded its assortment in women’s contemporary apparel with an “increased focus on outerwear and dresses. Our women’s ready-to-wear business continues to provide a solid foundation for us and we are very enthusiastic about our elevated men’s collection, which will build upon this foundation.”
In a telephone interview, Granoff attributed the growth of the brand in part to Vince’s “broad customer base,” and said the company plans to open seven to eight stores this year in the U.S. In the last two weeks, the company opened one on Newbury Street in Boston, and its first men’s only store in the Meatpacking District in Manhattan. She added that Vince Kids will be presented in stores at select locations, such as at the Madison Avenue site, where the large space on the lower level will be built out to house the line.
Internationally, the company continues to see growth in the U.K. and Japan, as well as sales increases in new territories such as Scandinavia and Benelux. A new shop-in-shop opened in Japan in March, bringing the total number of international shops-in-shop to 11 locations.
The company raised fiscal 2014 guidance for diluted earnings per share to between 88 cents and 92 cents, from its prior forecast of 85 cents to 90 cents. The company expects total net sales in the range of $325 million to $340 million.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews