Hot Stock to Track: Vince Holding Corp. (NYSE: VNCE)

Chastity Messenger

I am Chastity Messenger and I give “Import Tourism” an insight into the most recent news hitting the “Consumer Goods” sector in Wall Street.

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.

Address: 4437 Yorkshire Circle, Greenville, NC 27834, USA
Phone: (+1) 252-274-1912
Email: chastitymessenger@importtourism.com
Chastity Messenger

NEW YORK, July 17, 2019 – Shares of Vince Holding Corp. (NYSE: VNCE) showed the bearish trend with a lower momentum of -0.51% to $13.53. The company traded total volume of 672 shares as contrast to its average volume of 25.24K shares. The company has a market value of $161.02M and about 11.84M shares outstanding.

Vince Holding Corp. (VNCE) reported 4.2% increase in net sales to $77.80M from $74.60M in the fourth quarter of fiscal 2017, which included $1.60M in sales in our Direct-to-consumer segment from the 14th week. Wholesale segment sales increased 4.8% to $40.30M, because of lower sales allowances as contrast to the same period last year partially offset by a decline in shipments related to the exit of certain wholesale partners as well as lower off-price channel sales. Direct-to-consumer segment sales increased 3.6% to $37.50M contrast to the fourth quarter of fiscal 2017, which included $1.60M in net sales from the 14th week. Comparable sales increased 3.1% on a 13-week basis, counting e-commerce sales, due mainly to a boost in transactions partially offset by lower average unit retail related to product mix.

Gross profit increased 7.9% to $36.70M, or 47.1% of net sales, contrast to gross profit of $34.00M, or 45.5% of net sales, in the fourth quarter of fiscal 2017. The 160 basis point increase in gross margin rate in the fourth quarter of fiscal 2018 was because of a favorable impact from year-over-year adjustments to inventory reserves partially offset by higher upfront discounts in the off-price wholesale channel.

Selling, general, and administrative expenses were $34.70M, or 44.6% of sales contrast to $40.50M, or 54.3% of sales, in the fourth quarter of fiscal 2017. This includes non-cash asset impairment charges related to property and equipment of certain retail stores of $1.70M in fiscal 2018 and $5.10M in fiscal 2017. The decline in SG&A dollars, excluding the aforementioned non-cash asset impairment charges, was mainly the result of reduced compensation and benefit costs.

Operating income was $2.00M, or 2.5% of net sales, which included $1.70M related to the aforementioned non-cash asset impairment charges. Operating loss was $6.60M for the fourth quarter of fiscal 2017, which included $5.10M, related to the aforementioned non-cash asset impairment charges. Excluding the aforementioned charges, adjusted operating income was $3.60M in the fourth quarter of fiscal 2018 as contrast to adjusted operating loss of $1.50M in the fourth quarter of fiscal 2017.

Other income in the fourth quarter of fiscal 2017 included a Tax Receivable Agreement (“TRA”) adjustment of $82.00M.

Net income was $0.70M or $0.06 per diluted share contrast to $74.50M, or $6.41 per diluted share for the fourth quarter of fiscal 2017. The net income for the fourth quarter of fiscal 2017 includes the aforementioned TRA adjustment and the aforementioned non-cash asset impairment charge.

Adjusted net income, excluding the aforementioned charges, was $2.40M, or $0.20 per diluted share, as contrast to adjusted net loss of $2.40M, or a $0.20 loss per share, in the same period last year.

Balance Sheet:

The Company ended the fourth quarter of fiscal 2018 with $46.50M of borrowings under its debt agreements. The Company reduced overall borrowings under its debt agreements since the same period last year by $3.40M, mainly because of $5.50M of net repayments to the term loan facilities, partially offset by a boost in net borrowings under the revolving credit facilities to fund working capital needs.

Net inventory at the end of the fourth quarter of fiscal 2018 was $53.30M contrast to $48.90M at the end of the fourth quarter of fiscal 2017. The increase in inventory was mainly because of the growth of the replenishment program and the earlier timing of Spring receipts.

Capital expenditures for the fourth quarter of fiscal 2018 totaled $0.80M.

2019 Outlook:

For fiscal 2019 the Company anticipates:

  • Net sales to be between $290.0M and $300.0M. This compares to net sales of $279.00M in fiscal 2018.
  • Operating income to be between $70M and $90M, counting an estimated $1.50M associated with planned consulting fees. This compares to report operating income of $4.10M in fiscal 2018, which included a $1.70M non-cash asset impairment charge related to property and equipment of certain retail stores.
  • Capital expenditures to be between $4.00M and $4.50M.

The Company offered net profit margin of -1.20% while its gross profit margin was 47.70%. ROE was recorded as -4.80% while beta factor was 1.80. The stock, as of recent close, has shown the weekly downbeat performance of -4.76% which was maintained at 45.77% in this year.

Chastity Messenger

Chastity Messenger

I am Chastity Messenger and I give “Import Tourism” an insight into the most recent news hitting the “Consumer Goods” sector in Wall Street. I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 4437 Yorkshire Circle, Greenville, NC 27834, USA Phone: (+1) 252-274-1912 Email: chastitymessenger@importtourism.com