For fiscal 2017, the net sales increased 1.6 per cent to $272.6 million from $268.2 million during fiscal year 2016, including $1.6 million from the 53rd week.
For the fourth quarter of fiscal 2017, selling, general, and administrative expenses were $40.5 million, or 54.3 per cent of sales, compared to $39.1 million, or 61.1 per cent of sales, in the fourth quarter of fiscal 2016.
Gross profit was $34.0 million, or 45.5 per cent of net sales, compared to gross profit of $29.2 million, or 45.7 per cent of net sales, in the fourth quarter of fiscal 2016. The decrease in gross margin rate was largely due to a mix shift in the wholesale channel and an unfavourable adjustment to inventory reserves, partially offset by lower supply chain costs and a favorable adjustment to reserves related to the cost of executing the company’s wholesale distribution strategy.
Net income was $74.5 million, or $6.41 per diluted share, compared to a net loss of $162.1 million, or $32.81 per share, for the fourth quarter of fiscal 2016. Full year net income was $58.6 million, or $7.70 per diluted share.
"We were pleased with our fourth quarter results, which reflect the significant progress we’ve made toward regaining market share. Our strong comparable sales results illustrate that our product is resonating with consumers and that the demand for the Vince brand remains strong. Our largest comp increase came from locations in proximity to department stores that we have exited, demonstrating that our efforts to capture these customers in our own stores are working. As we place greater emphasis on our Direct-to-Consumer growth strategy, we plan to opportunistically open stores in key street and mall locations that are appropriate for the Vince brand. In our wholesale business, our partnerships with Nordstrom and Neiman Marcus are progressing very well and we are beginning to see our collaborative efforts yield benefits," Brendan Hoffman, chief executive officer, said.
The company ended the quarter with 55 company-operated stores, an increase of one store since the fourth quarter of fiscal 2016
"We are pleased with the continued momentum in our direct to consumer channel and sell thru at the department store thus far in the first quarter. There is great enthusiasm surrounding the Vince product, which is highly encouraging as we look ahead. We will continue to execute our strategic initiatives and believe that we are on the right track to deliver sustainable profitable growth over the long term," Hoffman concluded. (RR)
Fibre2Fashion News Desk – India
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