NEW YORK--(BUSINESS WIRE)--
Vince Holding Corp. (NYSE:VNCE), a leading global luxury apparel and
accessories brand (“Vince” or the “Company”), today announced
preliminary results for the second quarter of fiscal 2017 ended July 29,
2017.
The Company expects the following results for the second quarter ended
July 29, 2017:
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Net sales to be between $60 million and $62 million. This compares to
net sales of $60.7 million in the second quarter of last year.
-
Loss from operations to be between $8.5 million and $9.5 million
compared to a loss of $4.3 million in the second quarter of fiscal
2016. The year-over-year increase in loss from operations will include
a $1.75 million to $2.5 million net increase reflecting investments
related to the remediation and optimization of IT systems, severance,
and other one-time investments as well as savings related to the
Company’s previous consulting arrangement with its founders. In
addition, the prior year results reflected a $1.9 million benefit from
favorable adjustments to inventory reserves.
Estimated results for the second quarter of fiscal 2017 are preliminary
and remain subject to adjustment until the filing of the Company's
Quarterly Report on Form 10-Q with the SEC. The estimated results for
the second quarter of fiscal 2017 are unaudited. The Company expects to
report results for the second quarter of fiscal 2017 on September 7,
2017.
ABOUT VINCE
Established in 2002, Vince is a global luxury brand best known for
utilizing luxe fabrications and innovative techniques to create a
product assortment that combines urban utility and modern effortless
style. From its edited core collection of ultra-soft cashmere knits and
cotton tees, Vince has evolved into a global lifestyle brand and
destination for both women’s and men’s apparel and accessories. As of
July 29, 2017, Vince products were sold in prestige distribution
worldwide, including approximately 2,300 distribution locations across
more than 40 countries. With corporate headquarters in New York and its
design studio in Los Angeles, the Company operated 41 full-price retail
stores, 14 outlet stores and its e-commerce site, vince.com. Please
visit www.vince.com
for more information.
Forward-Looking Statements: This document, and any statements
incorporated by reference herein, contains forward-looking statements
under the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include the statements regarding, among other
things, our current expectations about the Company's future results and
financial condition, revenues, store openings and closings, margins,
expenses and earnings and are indicated by words or phrases such as "may,"
"will," "should," "believe," "expect," "seek," "anticipate," "intend,"
"estimate," "plan," "target," "project," "forecast," "envision" and
other similar phrases. Although we believe the assumptions and
expectations reflected in these forward-looking statements are
reasonable, these assumptions and expectations may not prove to be
correct and we may not achieve the results or benefits anticipated.
These forward-looking statements are not guarantees of actual results,
and our actual results may differ materially from those suggested in the
forward-looking statements. These forward-looking statements involve a
number of risks and uncertainties, some of which are beyond our control,
including, without limitation: our ability to continue having the
liquidity necessary to service our debt, meet contractual payment
obligations (including under the tax receivable agreement) and fund our
operations; our ability to comply with the covenants under our term loan
facility; our ability to continue as a going concern; our ability to
successfully complete the previously announced rights offering; our
ability to successfully operate the newly implemented systems,
processes, and functions recently transitioned from Kellwood Company;
our ability to remediate the identified material weaknesses in our
internal control over financial reporting; our ability to regain
compliance with the continued listing standards of the New York Stock
Exchange; our ability to ensure the proper operation of the distribution
facility by a third party logistics provider recently transitioned from
Kellwood; our ability to remain competitive in the areas of merchandise
quality, price, breadth of selection, and customer service; our ability
to anticipate and/or react to changes in customer demand and attract new
customers, including in connection with making inventory commitments;
our ability to control the level of sales in the off-price channels; our
ability to manage excess inventory in a way that will promote the
long-term health of the brand; changes in consumer confidence and
spending; our ability to maintain projected profit margins; unusual,
unpredictable and/or severe weather conditions; the execution and
management of our retail store growth plans, including the availability
and cost of acceptable real estate locations for new store openings; the
execution and management of our international expansion, including our
ability to promote our brand and merchandise outside the U.S. and find
suitable partners in certain geographies; our ability to expand our
product offerings into new product categories, including the ability to
find suitable licensing partners; our ability to successfully implement
our marketing initiatives; our ability to protect our trademarks in the
U.S. and internationally; our ability to maintain the security of
electronic and other confidential information; serious disruptions and
catastrophic events; changes in global economies and credit and
financial markets; competition; our ability to attract and retain key
personnel; commodity, raw material and other cost increases; compliance
with domestic and international laws, regulations and orders; changes in
laws and regulations; outcomes of litigation and proceedings and the
availability of insurance, indemnification and other third-party
coverage of any losses suffered in connection therewith; tax matters;
and other factors as set forth from time to time in our Securities and
Exchange Commission filings, including under the heading “Risk Factors”
in our registration statement on Form S-1/A filed with the Securities
and Exchange Commission and declared effective on August 14, 2017, and
under the heading "Item 1A—Risk Factors" in our Annual Report on Form
10-K and our Quarterly Reports on Form 10-Q. We intend these
forward-looking statements to speak only as of the time of this release
and do not undertake to update or revise them as more information
becomes available, except as required by law.
This press release is also available on the Vince Holding Corp. website (http://investors.vince.com/).
View source version on businesswire.com: http://www.businesswire.com/news/home/20170823005205/en/
Source: Vince Holding Corp.