Vince Holding Corp earnings close to double in third quarter
today Dec 13, 2018
New York-based luxury retailer Vince Holding Corp. reported soaring third-quarter earnings on Thursday, as improved sales figures were led by strong progress in the company's direct-to-consumer segment.
Vince's net sales for the third quarter ended November 3, 2018 rose 5.6% to $83.5 million, compared to $79.1 million in the prior-year period.
This improvement was driven by a 17.1% rise in direct-to-consumer sales, which totaled $30.5 million, and a 14.1% increase in comparable sales. Revenues in the company’s wholesale segment were flat at $53.0 million.
Thanks to this sales growth and improved margins, Vince posted an operating income of $9.0 million, or 10.7% of net sales, reflecting a soaring 68.9% increase compared to Q3 2017.
As a result of these vastly improved operating results, the company’s net income almost doubled in the quarter, rising from $3.5 million to $6.8 million.
“Our third quarter results reflect continued strength across several areas of our business,” said Vince CEO Brendan Hoffman in a release. “Overall, with another quarter of great results under our belt, combined with our performance through the Black Friday weekend, we are raising the low end of our full year guidance and are more optimistic than ever about our ability to deliver profitable growth over the long term.”
Year to date, Vince reported net sales of $201.2 million, up from $197.9 million in the prior-year period.
Operating income was $2.2 million, compared to an operating loss of $12.0 million in the first nine months of fiscal 2017, while net loss narrowed from $16.0 million to $2.7 million.
Having adjusted its full-year 2018 guidance, Vince now expects to see net sales of between $277 million and $280 million, up from $272.6 million in fiscal 2017. Operating income is expected to be in the range of $5 million to $7 million, compared to an operating loss of $18.3 million.
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