Vince sees double-digit sales lift, swings back to black
Vince Holdings reported on Thursday double-digit net sales growth for the fourth-quarter period, on the back of strong comparable sales and surging direct-to-consumer sales.
The New York-based luxury brand said net sales increased 16.9% to $74.6 million for the fourth quarter ending February 3, compared to $63.9 million in the fourth quarter of fiscal 2016.
Wholesale segment sales rose 11.7% to $38.5 million, compared to the same period last year, while direct-to-consumer sales surged foward 22.9% to $36.2 million.
For the 13-week period, comparable store sales -- including online sales -- jumped 16%, "primarily due to an increase in average unit retail," said the luxury apparel and accessories brand.
Swinging back to the black, Vince's 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 last year.
Vince Holding CEO, Brendan Hoffman said significant progress was made by regaining market, as seen in the strong comparable sales results, adding "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," said Hoffman.
The chief executive also highlighted the brand's emphasis on its direct-to-consumer growth strategy, which includes "opportunistically" opening stores in key street and mall locations that suit 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," he added.
For the full-year 2017, total sales increased 1.6% to $272.6 million, while net income reached $58.6 million, or $7.70 per diluted share.
Founded in 2002, Vince has developed in to a fully fledged luxury lifestyle brand for both men and women. The brands products are sold across some 2,400 multi-brand locations within 40 countries.
The firm is based in New York and houses a design studio in Los Angeles. Vince operates 41 namesake stores, and 14 outlet stores, as well as an online global store.
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