Q2FY17 net sales tumble 24.1% at clothing retailer Vince

10 Sep '16

2 min read

Net sales tumbled 24.1 per cent year over year to $60.7 million at clothing retailer Vince Holding for the three months ended July 30, 2016. Of this, wholesale segment net sales slipped 32.1 per cent, while direct-to-consumer segment turnover fell slower at 2.8 per cent and comparable sales, which include ecommerce revenues, decreased 18.7 per cent.

In the second quarter of fiscal 2017, gross profit totaled $27.4 million, or 45.1 per cent as against gross profit of $20.8 million, or 26.0 per cent of net sales, in the second quarter of fiscal 2016.

According to Vince, the reporting quarter includes a $14.4 million charge associated with the write-down of excess inventory and aged product to expected net realisable value.

Operating loss for the quarter under review was $4.3 million vis-à-vis operating loss of $6.5 million in the prior fiscal's second quarter. But excluding the inventory write-down and net management transition costs, operating income for the second quarter of fiscal 2017 was $10.8 million.

The retailer was able to reduce its net loss to $2.0 million, or $0.04 per share in the reporting period versus net loss of $5.0 million, or $0.14 per share in the earlier fiscal's same quarter. (AR)

Fibre2Fashion News Desk – India

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