Q2FY15 revenue at fashion brand Vince surges 20.2%

05 Sep '14

3 min read

NYSE-listed Vince Holding Corp, a leading contemporary fashion brand reported a 20.2% year-on-year revenue surge in second fiscal quarter ended August 2, 2014.

Net sales for the second quarter of 2014 totalled $89.3 million, up 20.2% over $74.3 million achieved during the comparable second fiscal quarter of 2013. Comparable store sales increased 7.1% over the same period.

Gross profit in the second quarter of 2014 too mounted 30.8% to $44.0 million from $33.6 million in the year ago quarter.

Gross profit as a percentage of net sales increased massively by 400 basis points to 49.3% from 45.3% in second quarter of 2013.

Vince said this increase was driven primarily by supply chain efficiencies, increased penetration in higher margin product, and increased penetration of the direct-to-consumer, international and licensing businesses.

Selling, general, and administrative expenses in the second quarter of 2014 stood at $24.1 million or 27.0% of sales, which includes secondary offering costs, compared to $18.7 million or 25.1% of sales in second quarter of 2013.

Excluding secondary offering costs, selling, general and administrative expenses as a percent of sales touched 26.3% in the second quarter of 2014 against 21.4% in second quarter of 2013, which too excludes public company transition costs.

Operating income for the second quarter of 2014 increased 33.1% to $19.9 million or 22.3% of sales, compared to $15.0 million or 20.2% of sales for the second quarter of 2013.

Net income for second quarter of 2014 rose to $10.5 million, including the impact of the secondary offering costs, compared to a net loss of $10.5 million for the second quarter of fiscal 2013, which includes the impact of public company transition costs and results of the non-Vince businesses that were separated on November 27, 2013.

Vince said its diluted earnings per share for the second quarter of 2014 touched $0.27, including the impact of secondary offering costs, compared to a diluted loss per share for the second quarter of 2013 of $0.40, which includes the impact of non-Vince discontinued businesses.

Vince’s cash balance at the end of the second quarter stood at $0.1 million. Vince said it voluntarily paid down $10.4 million of debt during the second quarter of fiscal 2014 and $35.4 million since the company's initial public offering on November 27, 2013.

This the fashion brand said resulted in total debt outstanding of $139.6 million as of August 2, 2014.

Inventory at the end of the second quarter of 2014 rose to $58.6 million versus $34.0 million as of February 1, 2014 and $28.0 million at the end of the second quarter of fiscal 2013.

According to Vince, the planned inventory increase was driven primarily by seven net new store openings since the second quarter of last year, a projection of five to six additional new store openings in fiscal 2014, 15 to 20 new shop-in-shop openings anticipated in the second half of this year, an expanded replenishment program, and overall global sales growth projections. (AR)

Fibre2fashion News Desk - India

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