Brendan Hoffman

Vince Holding Corp. posted fourth-quarter results that were better than Wall Street’s estimates.

For the three months ended Jan. 30, net income was $1.8 million, or 5 cents a diluted share, compared with net income of $10.5 million, or 28 cents, a year ago. On an adjusted basis that excludes the benefit from the recovery on an inventory write-down and a favorable adjustment of certain transition costs, net income was $300,000, or 1 cent a diluted share. Net sales fell 13.6 percent to $81.8 million from $94.7 million, while comparable-store sales including the e-commerce channel rose 10.7 percent. Wall Street was expecting earnings per share of 0 cents on revenues of $81.1 million.

By sales category, the wholesale segment dropped 30.2 percent to $48.1 million, while direct-to-consumer jumped 30.5 percent to $33.7 million.

For the year, net income was $5.1 million, or 14 cents a diluted share, on net sales of $302.5 million. Full-year results were at the high end of the company’s updated guidance earlier this month.

The company posted results after the markets closed. Shares of Vince closed Tuesday up 5.6 percent to $6.76 in Big Board trading, but then fell 2.4 percent to $6.60 in after-market trading.

Brendan Hoffman, chief executive officer, said on the conference call to Wall Street analysts, “We are making great strides with our product, our top priority, as we work to create everyday casual luxury essentials with modern effortless style.”

He also told analysts that the brand’s wholesale partners are pleased “to see that we have recaptured the brand DNA that had made us so successful in years past” and that “the very emotional connection that our partners had towards the brand has been restored.”

He said the company has ended its nearly four-week tiered promotional event because it had the effect of having customers wait for sales, as well as “handcuff our wholesale partners.”

Hoffman said he expects the company to “start to see an inflection point” on its performance during holiday. He added that the company is taking the necessary steps for the “long-term health of the brand.” Hoffman said, in some instances, that means “taking a step back or forgoing some short-term top-line gains in order to build the brand back in a way that it’s sustainable.”

He told analysts that the company is making “investments in the business to support long-term growth objectives.” On hold is the handbag business, which will be relaunched. The company is in the process of finding a designer to lead the business, the ceo said.

For fiscal 2016, the company expects diluted EPS of between 0 cents and 6 cents, on total net sales between $290 million and $305 million. The company said it expects continued pressure in the first half, although improvement is anticipated in the second half compared with the year ago period.

Founders Rea Laccone and Christopher LaPolice returned to the brand in November under a two-year consulting pact. Their impact on the design and creative efforts is expected to be seen beginning with the fall 2016 deliveries.