Home / Knowledge / News / Fashion / Vince comparable sales climb 12.3% in Q1 2018
Vince comparable sales climb 12.3% in Q1 2018
18
Jun '18
Courtesy: Vince
Courtesy: Vince
The comparable sales of Vince Holding Corp., a leading global luxury apparel and accessories brand, for the first quarter of fiscal 2018 increased 12.3 per cent, including e-commerce sales, primarily due to an increase in transactions. The direct-to-consumer segment sales went up 14.9 per cent to $26.0 million compared to the first quarter of fiscal 2017.

However, the company's net sales for the reported period went down 6.1 per cent to $54.5 million compared to $58.0 million in the first quarter of fiscal 2017. Wholesale segment sales decreased 19.5 per cent to $28.5 million, in line with expectations, as compared to the same period last year primarily due to the planned reduction in full-price wholesale partners.

Gross profit was $25.5 million, or 46.8 per cent of net sales, compared to gross profit of $25.6 million, or 44.1 per cent of net sales, in the first quarter of fiscal 2017. The increase in gross margin rate was largely due to lower sales allowances in the wholesale channel and a favourable shift in channel mix, partially offset by the unfavorable impact of adjustments to inventory reserves.

Selling, general, and administrative (SG&A) expenses were $29.9 million, or 54.8 per cent of sales, compared to $33.8 million, or 58.2 per cent of sales, in the first quarter of fiscal 2017. The decline in SG&A dollars was primarily the result of lower product development costs and the non-recurrence of investments made last year related to the remediation and optimisation of the systems implemented during fiscal 2016.

The company ended the first quarter of fiscal 2018 with $5.2 million in cash and cash equivalents and $50.6 million of borrowings under its debt agreements. The company decreased borrowings under its debt agreements since the same period last year by $15.5 million, primarily due to $14.0 million of payments to the term loan facility.

Net inventory at the end of the first quarter of fiscal 2018 was $49.4 million compared to $32.2 million at the end of the first quarter of fiscal 2017. The increase in net inventory was primarily due to a change in the timing of shipments to the off-price wholesale channel, growth of the replenishment programme, and the reinstatement of the company’s summer collection.

"We were pleased with the strong response to our women’s and men’s product assortments in the first quarter which drove a double digit comparable sales increase in our full price stores, and more than 25 per cent growth in our e-commerce business. In addition, we are highly encouraged by our three recent store openings, all of which are exceeding our sales expectations. In the wholesale channel, we saw better than expected performance at both Nordstrom and Neiman Marcus as well as strong sell-through across all accounts, indicating a favourable response to our product offering. Sales in our wholesale segment declined, consistent with our expectations, primarily as the result of our planned reduction in partners in this channel. Given our increased confidence and visibility in the business, we have reinstituted annual guidance. With the building enthusiasm for our brand, we are more confident than ever that we are on the right path to delivering consistent profitable growth over the long term," Brendan Hoffman, chief executive officer, said.

For fiscal 2018, net sales is expected between $273 and $280 million. This is compared to net sales of $272.6 million in fiscal 2017. The operating income is likely to be between $3 and $6 million. This compared to reported operating loss of $18.3 million in fiscal 2017 which includes a $5.1 million non-cash asset impairment charge related to property and equipment of certain retail stores. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Businesswire/PrimaLoft

Textiles | On 18th Nov 2018

PrimaLoft unveils PrimaLoft Bio Performance Fabric

PrimaLoft, a leader in advanced material technology, has unveiled...

Higher sales and earnings at Macy's in Q3FY18

Fashion | On 18th Nov 2018

Higher sales and earnings at Macy's in Q3FY18

Higher sales and earnings were recorded at Macy’s, one of the premier ...

Courtesy: Amazon

Apparel/Garments | On 18th Nov 2018

Amazon's new headquarters in New York City, Arlington

Amazon is setting up two new headquarters, one in New York City and...

Interviews View All

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search