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Shares of Vince Holding Corp. rose 1.6 percent Thursday after the firm posted its first quarterly earnings report as a public company, having completed its public offering in November.
This story first appeared in the March 28, 2014 issue of WWD. Subscribe Today.
For the three months ended Feb. 1, the company said net income was $582,000, or 2 cents a diluted share, against a net loss of $11.6 million, or 44 cents, last year. On an adjusted basis, excluding in part the impact of non-Vince businesses prior to November’s initial public offering and certain public company transition costs, net income rose 15.1 percent to $8.7 million, or 23 cents a diluted share, from $7.6 million, or 20 cents, a year ago. Net sales rose 20.5 percent to $87.8 million from $72.8 million. Same-store sales gained 12.2 percent in the quarter.
For the year, the net loss narrowed to $27.4 million, or 98 cents a diluted share, from a net loss of $107.7 million, or $4.11, in 2012. On an adjusted basis, net income rose 23.6 percent to $28.1 million, or 73 cents a diluted share, from $22.7 million, or 60 cents, a year ago. Net sales rose 19.9 percent to $288.2 million from $240.4 million.
Jill Granoff, chief executive officer, said in a conference call to Wall Street analysts that the company plans to generate strong revenue growth via both new and existing product opportunities. For fiscal 2014, the company plans to increase its focus on outerwear and dresses in the women’s contemporary categories.
In a telephone interview, she said, “At the same time we are excited about the elevated product assortment launch in men’s this fall.” Its men’s footwear line will hit the floor around July, along with children’s apparel. Both are licensed categories, with major retail partners picking up the lines, Granoff said. The firm is planning on adding handbags to its women’s assortment in early 2015, but that will be done in-house.
The company, which is planning to add between six and eight stores to its existing count of 28, still has a goal of 100 stores in the U.S. It also is looking to open 15 to 25 shops-in-shop domestically and up to five internationally this year, Granoff said. At the end of 2013, it had 11 shops-in-shop in the U.S. and 10 internationally.
“These shops-in-shop are with key department store partners, such as Saks, Neiman Marcus and Bloomingdale’s,” the ceo explained.
For fiscal year 2014, the company said it expects diluted earnings per share at between 85 cents and 90 cents, on net sales of between $325 million and $340 million.
Shares of Vince on Thursday closed at $23.76 in trading on the New York Stock Exchange.