Vince Reports Tough Fourth Quarter
Vince Holding Corp., experiencing sharp pandemic-related sales declines, went into the red in the fourth quarter, reporting a net loss of $5.76 million, or $0.48 per share, compared to a profit of $51.68 million, or $4.29 a share, in the year-ago period.
The net loss excludes the impact of a non-cash deferred tax item. The company has not yet completed its financial closing procedures with respect to the analysis of the item, which could lead to an increase in the loss per share of between 10 to 15 cents a share in the fourth quarter.
The loss from operations was $3.9 million in the fourth quarter ended Jan. 30, compared to a loss of $3.3 million in the year-ago period. Excluding costs associated with the acquisition of Rebecca Taylor and Parker and non-cash asset impairment charges, adjusted loss from operations in the fourth quarter of fiscal 2019 was $0.3 million.
Net sales in the fourth quarter decreased 28.4 percent to $74.8 million, compared to $104 million in the same period a year ago. Vince brand sales saw a 20.4 percent decrease, while the Rebecca Taylor and Parker brands dropped 68.9 percent.
“As the world recovers from the COVID pandemic and life begins to normalize, we are excited about the future of our brands,” said Jack Schwefel, chief executive officer. “Vince is distinctly positioned as a brand that embodies effortless sophisticated style. We will continue to leverage Vince’s brand equity and deep consumer connections to expand awareness and drive growth with an increased focus on the direct-to-consumer channel. Rebecca Taylor also possesses a strong DNA and as we return to the brand’s heritage in a modernized way, we believe we can achieve a similar level of recognition that was recaptured by Vince.”
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David Stefko, Vince’s chief financial officer, added, “We saw sequential improvement in the Vince brand during the fourth quarter led by our wholesale business. Within the wholesale channel, retail sales continue to improve as we believe we are taking share within the contemporary luxury category. At Rebecca Taylor, the decrease in sales reflect a resetting of the brand including an elimination of one of our seasonal collections. We are enthusiastic about the relaunch for spring which has been received with favorable response. As we continue to navigate through the recovery of the macro-environment, we will remain focused on maintaining disciplined cost controls and optimizing liquidity as we position our brands for the future.”
Vince brand’s net sales for fourth quarter were $69.5 million. Rebecca Taylor and Parker brands generated $5.3 million in sales.
For all of the fiscal year ended Jan. 31, total net sales decreased 41.4 percent to $291.9 million from $375.2 million in the previous year. The operating loss was $61.1 million, compared to the operating loss of $20.4 million in the year before.
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