Vince Holding Corp. posted mixed second-quarter results, but managed to narrow its loss for the period and beat Wall Street’s consensus earnings per share expectations.

The contemporary fashion brand said the loss for the three months ended July 30 was $2 million, or 4 cents a diluted share, compared with a net loss of $5 million, or 14 cents, a year ago. On an adjusted basis, excluding inventory write-down and net management transition costs, net income for the quarter was $5.2 million, or 14 cents a share. Net sales were down 24.1 percent to $60.7 million from $80 million, which included a 32.1 percent decrease in wholesale net sales to $39.6 million and a 2.8 percent decline in direct-to-consumer sales to $21.1 million. Comparable sales fell 18.7 percent, including e-commerce sales. The declines reflect planned inventory reductions in those channels in connection with the product transition under the new design team.

Wall Street analysts had expected a net loss of 6 cents on net sales of $64.2 million.

For the six months, the net loss was $3.9 million, or 9 cents a diluted share, compared with a net loss of $2.6 million, or 7 cents, a year ago. Net sales fell 8.2 percent to $128.3 million from $139.8 million.

Brendan Hoffman, chief executive officer, said during the call to Wall Street analysts, “Overall, our second-quarter results came in as expected. We planned our wholesale business down for reduced inventory levels in both the full-price and off-price channels. As we discussed in our last call, as part of our transition to our new product line, we planned a significant reduction in shipment of our pre-fall line as well reduced the size of this collection by approximately half.”

Hoffman said the company saw an improved response among its wholesale partners, “despite lower inventory levels, which is evidenced by a sequential acceleration in sell-throughs.”

For fiscal 2016, the company guided diluted EPS to be between 0 cents to 6 cents on net sales of between $290 million to $305 million. The company also said that capital expenditures are expected in the range of $12.5 million to $14.5 million, mostly due to additional branding initiatives and additional investment for the company’s IT migration.

The fall collection has been set up on the selling floor, and Hoffman said the updated collection by founders Rea Laccone and Christopher LaPolice won’t be fully realized until the fourth quarter. Laccone and LaPolice returned to the brand’s fold in November 2015 under a two-year consulting pact. The two oversee Vince’s product, merchandising and creative efforts.

Also on the conference call was David Stefko, chief financial officer.

The executives said the company is just now starting to build back up the inventory levels. They also described the inventory levels as much cleaner than they’ve ever been before, and that Laccone and LaPolice have “brought back discipline to the company [where] inventory management is top of mind.” They also said they’ve told off-price customers that there will be some product, since that’s part of the business, but it will be less important part of the brand’s overall business.

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