Vince Sales Fell To 45% In The Two Quarter, To 45%

It is understood that as the founder returned to lead the design team for product pition,

Vince Holding Corp. (NYSE:VNCE) continued to deliberately reduce inventories in wholesale and retail channels in the two quarter, resulting in a sharp decline in sales, but earnings data were better than market expectations.

In the two quarter of July 30th, net sales of Vince Holding Corp. were reduced by 24.1% to 60 million 700 thousand US dollars, less than 64 million 200 thousand US dollars, compared with 79 million 990 thousand US dollars in the same period last year.

Wholesale sales fell by 32.1% to 39 million 600 thousand dollars, while the previous strong direct consumer sales also fell 2.8%, falling to $21 million 100 thousand, and e-commerce sales fell by 18.7%.

All fell with

Vince Holding Corp. CEO Brendan Hoffman has revealed that the size of the early autumn series has shrunk by about half, with plans to reduce the supply of styles to reduce inventory levels.

David Stefko, chief financial officer, also pointed out that the brand is beginning to re-establish its inventory level.

He said that Vince brand co-founder Rea Laccone Christopher and Christopher LaPolice became the group's top priority as a consultant after the return of consultants in November last year. He also described the current inventory as being more organized than ever before.

The surge from 26% in the same period last year to 45.1% was mainly due to a $14 million 400 thousand surplus inventory reduction in the same period last year.

The deficit has also improved. Operating losses have been reduced to $4 million 300 thousand from $6 million 500 thousand a year ago. Net losses also narrowed from $5 million 26 thousand, or $0.14 per share, to $1 million 967 thousand, or a loss of $0.04 per share. The market's expected loss per share was $0.06.

The annual sales and profit expectations were maintained.

Brendan Hoffman pointed out that the response of the wholesale partners to the group's current strategy has improved because sales have accelerated.

David Stefko revealed that the importance of discount business in the overall business of the brand decreased, and the group reduced the supply of products to the discount channel customers.

On the other hand, the complete series, led by co-founder Rea Laccone and Christopher LaPolice, will not be fully installed until the end of this year, and their contracts will end by the end of 2017.

Vince Holding Corp. (NYSE:VNCE) fell 3.28% on Thursday, to $6.48, after a further 3.24% drop in its post office performance, which has jumped 40% since 2016.