85 418
Fashion Jobs
LEE
PT Keyholder
Permanent · GRAPEVINE
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · WALPOLE
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · HOUSTON
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · MONONA
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · MORTON
KOHLS
Associate HR Business Partner
Permanent · MENOMONEE FALLS
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · LAKELAND
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · PEARLAND
KOHLS
Full-Time Loss Prevention Service Specialist*
Permanent · NORRIDGE
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · EDWARDSVILLE
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · GURNEE
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · ORANGE CITY
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · MOBILE
NAVY EXCHANGE
Supply Chain Systems Tech
Permanent · VIRGINIA BEACH
NAVY EXCHANGE
(Norfolk Navy Gateway Inns And Suites) Guest Service Representative i
Permanent · WILLIAMSBURG
NAVY EXCHANGE
Guest Service Representative II
Permanent · GULFPORT
NAVY EXCHANGE
Guest Service Representative II (Part-Time)
Permanent · PENSACOLA
NAVY EXCHANGE
Guest Service Representative II (Full-Time)
Permanent · PENSACOLA
NEIMAN MARCUS
Senior Manager, Fulfillment Operations
Permanent · PITTSTON
NEIMAN MARCUS
Loss Prevention Investigator- Charlotte
Permanent · CHARLOTTE
LULULEMON
Visual Merchandising Specialist | Toledo Local
Permanent · TOLEDO
LULULEMON
Community Specialist | Martha's Vineyard
Permanent · EDGARTOWN
Published
Jun 10, 2020
Reading time
2 minutes
Download
Download the article
Print
Text size

Vince sales rise 6%; acquisition expenses lead to operating loss

Published
Jun 10, 2020

NYC-based fashion company Vince Holding Corp announced a 6.0% increase in net sales in the fourth quarter on Tuesday, but saw expenses related to its recent acquisition of the Rebecca Taylor and Parker brands sap its operating profit.


The Vince brand saw strong growth in both its wholesale and direct-to-consumer channels in Q4 - Instagram: @vince

 
For the fourth quarter ended February 21, 2020, the group’s total net sales were $104.4 million, up from $98.5 million in the prior-year period.
 
The company’s namesake Vince brand posted sales of $87.3 million, a 12.3% increase compared to the same quarter in the previous year, reflecting an 11.5% rise in wholesale revenues and a 13.1% increase in direct-to-consumer sales. Comparable sales in the segment rose 7.7%.

In the Rebecca Taylor and Parker segment, acquired in November of last year, quarterly sales fell 17.7% to $17.1 million.
 
Expenses related to the purchase of these brands also pushed the company into an operating loss of $20.4 million, down from operating income of $5.4 million in Q4 2018.
 
Nonetheless, thanks largely to a TRA adjustment to the tune of $56.0 million, Vince’s quarterly net income totaled $51.7 million, or $4.29 per diluted share, up from net income of $0.2 million, or $0.01 per diluted share, in the prior-year period.
 
For the full fiscal year 2019, the company reported $375.2 million in net sales, a 3.7% rise compared to $361.7 million in fiscal 2018.
 
Annual sales at the Vince brand were $300.2 million, a year-over-year increase of 7.6%, with wholesale revenues rising 4.5% and direct-to-consumer sales jumping 11.8%. Full-year sales in the Rebecca Taylor and Parker segment decreased 9.4% to $75.0 million.
 
Net income came to $30.4 million, or $2.55 per diluted share, compared to a net loss of $2.0 million, or $0.17 per share, in the previous year.
 
“Looking back on our fourth quarter and full year earnings results, we exceeded our expectations,” said Vince CEO Brendan Hoffman in a release. “We were pleased to see the momentum continue at the Vince brand driven by strong performance at both our direct-to-consumer business and wholesale channel. We had also made meaningful progress with the integration of our Rebecca Taylor and Parker acquisition.”
 
Hoffman further pointed out that the company began fiscal 2020 strong, but has since suffered due to the temporary closure of its brick-and-mortar stores as a result of the Covid-19 pandemic.
 
In order to counteract the negative impact of the health crisis, Vince has focused its resources on its e-commerce operations and has seen a corresponding surge in consumer interest in these channels.
 
Cost reduction initiatives implemented by the company include the furloughing of all retail associates and a significant portion of its corporate employees, the temporary reduction of retained employee salaries and the streamlining of its expense structure.
 
As of June 8, the company has reopened four of its 68 Vince and Rebecca Taylor stores.
 
Due to the ongoing uncertainty surrounding the coronavirus pandemic, Vince has not provided financial outlook for either the first quarter or the full fiscal year 2020. The company plans to report preliminary Q1 earnings results on June 16th.

Copyright © 2024 FashionNetwork.com All rights reserved.