Vince Holding net sales Up 15% in Q1
Diluted EPS increased 50.0% to $0.06.
Vince Holding Corp, a leading contemporary fashion brand, last week reported unaudited results for the first quarter of fiscal 2015. Net sales increased 12.0% to$59.8 millionfrom$53.5 millionin the first quarter of fiscal 2014. The wholesale segment increased 2.6% to$38.3 millionand the direct-to-consumer segment increased 33.6% to$21.6 millionover the first quarter of fiscal 2014.
Comparable store sales increased 9.7%, including ecommerce sales. Gross profit increased 16.4% to$30.7 millionfrom$26.4 millionin the first quarter of fiscal 2014. Gross profit as a percentage of net sales increased 200 basis points to 51.4% from 49.4% in fiscal 2014.
Selling, general, and administrative expenses were$25.6 millionor 42.9% of sales compared to$21.2 millionor 39.7% of sales in the first quarter of fiscal 2014. The increase in SG&A was largely driven by store labor and occupancy costs associated with 13 new store openings since the end of the first quarter of fiscal 2014, as well as increased stock compensation expense compared to last year’s first quarter. Operating income was$5.1 millionor 8.5% of sales compared to$5.2 millionor 9.7% of sales for the first quarter of fiscal 2014.
Net income increased 77.3% to$2.5 million, or$0.06per diluted share, compared to$1.4 million, or$0.04per diluted share, for the first quarter of fiscal 2014. During the first quarter of 2015, the Company opened four new stores, ending the quarter with 41 company-operated stores.
Jill Granoff, Chief Executive Officer of Vince, commented, «Our first quarter performance was generally in line with our expectations, with double-digit sales and profit growth in a challenging environment. Our results were driven by a 34% increase in our direct-to-consumer segment sales, a modest increase in our wholesale segment sales and gross margin expansion of 200 basis points. We believe that Vince continues to resonate with consumers as a premium contemporary fashion brand offering everyday luxury essentials and modern effortless style.»
Ms. Granoff continued, «Despite our solid first quarter performance, we are lowering our guidance for the full fiscal year based on current business trends and other macro dynamics. While we are still projecting double-digit sales growth in our retail, ecommerce, international and licensing channels, we are now projecting a low double-digit decline in our domestic wholesale channel versus last year due primarily to reduced off-price shipments and a reduction in our anticipated full-price reorder rate. In addition, we are now planning comp sales growth inclusive of ecommerce sales for the remainder of the year in the high single digit range. While we are lowering our sales expectation for the year, we still plan to deliver a high-teens operating margin. We remain confident that we are taking the appropriate actions that will drive both sales and profit growth over the long term as Vince continues its evolution into a global, dual gender, multi-channel lifestyle brand.»
VINCE is a leading contemporary fashion brand best known for modern effortless style and everyday luxury essentials. Established in 2002, the brand now offers a wide range of women’s, men’s and children’s apparel, women’s and men’s footwear, and handbags. Vince products are sold in prestige distribution worldwide, including over 2,500 distribution locations across 42 countries.