Home / Knowledge / News / Fashion / Vince Holding Q2 FY17 net sales totals $60.8 million
Vince Holding Q2 FY17 net sales totals $60.8 million
11
Sep '17
Courtesy: Vince
Courtesy: Vince
Vince Holding has recorded 0.2 per cent rise in net sales to $60.8 million in the second quarter of 2017 from $60.7 million in the second quarter of 2016. Wholesale segment sales decreased 0.9 per cent to $39.3 million, due to low sales internationally. Direct-to-consumer segment sales increased 2.3 per cent to $21.6 million compared to prior period.

For the reported period, luxury brand's gross profit was $25.6 million, or 42.0 per cent of net sales. This compares to gross profit of $27.4 million, or 45.1 per cent of net sales, in the second quarter of fiscal 2016. The prior year results reflected a $1.9 million benefit from favourable adjustments to inventory reserves. In addition, gross margin in the second quarter of fiscal 2017 was negatively impacted by a higher mix of markdowns in the direct-to-consumer segment, as well as an unfavourable impact from higher product and supply chain costs, partially offset by decreased discounts and allowances in the wholesale segment.

"We were pleased to see the stabilisation in net sales during the second quarter, which showed significant sequential improvement versus our first quarter results. In our wholesale business, sales decreased slightly, due to a reduction in international sales. We also saw disruption in receipt flows for pre-Fall and Fall deliveries. In our direct-to-consumer segment, we saw sequential improvement in sales, with strong sales growth in our e-commerce business. In addition, we were very pleased with the positive sell through that we have seen for our Fall product thus far in our retail channel," said Brendan Hoffman, chief executive officer.

The company's selling, general, and administrative expenses were $34.4 million, or 56.6 per cent of sales compared to $31.6 million, or 52.1 per cent of sales, in the second quarter of fiscal 2016. The growth in SG&A expense for the second quarter of fiscal 2017 was primarily due to a net increase of $2.3 million reflecting investments related to the remediation and optimisation of IT systems, severance, and other one-time investments as well as savings related to the Company’s previous consulting arrangement with its founders.

"As we look ahead, we have taken steps to rationalise our department store distribution and made the strategic decision to enter into limited distribution arrangements for non-licensed products with two department store partners, Nordstrom and Neiman Marcus, beginning in fiscal 2018. We expect that these partnerships will bring a number of benefits to our business, including driving improved profitability over the long-term," said Hoffman.

"Overall, we believe that we have the right initiatives and team in place for our brand, and expect to stabilize and ultimately drive growth in the business as we refine our wholesale distribution strategy, and enhance our direct-to-consumer segment. In addition, we believe that our efforts to deliver product that is better aligned with customers’ needs and enhanced, targeted marketing initiatives, combined with our focus on reducing costs across the business while making investments in our infrastructure will support our long term growth objectives," concluded Hoffman. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Amazon

Apparel/Garments | On 23rd Sep 2018

Consumers in Turkey get access to Amazon

Amazon has launched in Turkey giving customers in the country...

Value in omni-channel retail with Flipkart buying: Walmart

Apparel/Garments | On 23rd Sep 2018

Value in omni-channel retail with Flipkart buying: Walmart

With the acquisition of Flipkart, Walmart sees great value in...

E-com to result in common SE Asian consumer market: BCG

Textiles | On 23rd Sep 2018

E-com to result in common SE Asian consumer market: BCG

The rapid spread of e-commerce and digital technologies is binding...

Interviews View All

Mandeep Nagi, Shades of India

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

DK Sharma, Velocity Apparelz

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Top executives, Textile industry

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Sarah Perkins,

Sarah Perkins

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

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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


September 2018

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

news category


Related Categories:

Advanced Search