Provides 2016 Guidance
NEW YORK--(BUSINESS WIRE)--
Vince Holding Corp. (NYSE:VNCE), a leading contemporary fashion brand
(“Vince” or the “Company”), today announced preliminary estimated sales
and earnings per share (“EPS”) results for the fiscal year ended January
30, 2016 (“Fiscal 2015”) and introduced estimated fiscal 2016 guidance.
Estimated Results for Fiscal 2015 are as follows:
-
Preliminary net sales are expected to be between $300.5 million and
$302.5 million;
-
Preliminary diluted EPS is expected to be between $0.12 and $0.14; and
-
On an adjusted basis, preliminary diluted EPS is expected to be
between $0.32 and $0.34. Adjusted EPS excludes a $10.3 million net
charge associated with the write-down of excess inventory and aged
product to expected net realizable value incurred in the second
quarter of Fiscal 2015, subsequent recovery of inventory in each of
the third and fourth quarters, and $2.7 million in net management
transition costs.
Brendan Hoffman, Chief Executive Officer, commented, “We were pleased to
see our fiscal 2015 preliminary net sales exceed our most recent
guidance. Our results benefited from the work we have done with our
wholesale partners to reduce initial orders which led to higher
full-price sales and reduced markdown allowances. We also saw favorable
response to some of our pre-Spring product contribute to the
better-than-expected sales and margin results. While we have begun to
make initial progress in recapturing the Vince DNA, we believe that our
initiatives will begin to yield more meaningful results later in the
year with our Fall 2016 delivery which will be our first collection
designed and merchandised by our founders since their return. Overall,
while we still have a lot of work in front of us, we remain confident
that the plans we have in place will position us for sustainable,
profitable growth over the long-term.”
Reported estimated results for Fiscal 2015 are preliminary and remain
subject to adjustment until the filing of the Company's Annual Report on
Form 10-K with the SEC. The estimated results for Fiscal 2015 are
unaudited. In addition, adjusted EPS is a non-GAAP financial measure,
and should not be considered in isolation from, or as a substitute for,
financial information prepared in accordance with GAAP.
2016 Outlook
The Company provided guidance for the fiscal year ended January 28, 2017
(“Fiscal 2016”).
Mr. Hoffman continued, “Looking ahead, we will continue to make
investments in talent as well as other strategic initiatives designed to
enhance the product and further strengthen our brand and market
leadership position. While we anticipate that these investments will
drive improved financial performance in late 2016, we are positioning
ourselves for a difficult first half of the year as the retail industry
remains challenging and the product assortment will not reflect our
go-forward vision for the brand until the latter part of the year.”
For Fiscal 2016, the Company expects:
-
Total net sales between $290 million and $305 million, including
revenues from 6 new retail stores and comparable sales growth
inclusive of ecommerce sales in the flat to low-single digit range.
The Company expects sales to decrease in the mid- to high-single digit
range for the first half of the year and to increase in the low- to
mid-single digit range in the second half of the year as compared to
the same prior year periods;
-
Gross margin of approximately 47%;
-
SG&A to be between $132 million and $135 million;
-
Diluted EPS of $0.00 to $0.08. The company expects net loss per share
to be in the mid-teen’s range in the first half of the year due to
higher SG&A growth as the result of continued store and strategic
investments in early fiscal 2016 and the annualization of store
openings and strategic investments made in fiscal 2015. The EPS
guidance does not reflect any additional shares outstanding that would
result from the completion of the contemplated $65 million rights
offering pursuant to the Registration Statement filed with the SEC on
February 12, 2016; and
-
Capital expenditures between $10 million and $12 million.
ABOUT VINCE
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 and men'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 48 countries. With corporate headquarters in New York and its
design studio in Los Angeles, the Company operates 35 full-price retail
stores, 14 outlet stores and its e-commerce site, VINCE.com. Please
visit www.VINCE.com
for more information.
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
estimates for Fiscal 2015 and the statements under "2016 Outlook" and
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 maintain adequate cash flow from operations or availability
under our revolving credit facility to meet our liquidity needs
(including our obligations under the tax receivable agreement); our
ability to successfully complete the migration of our systems and
processes from Kellwood Company; our ability to successfully transition
our distribution system from Kellwood Company to a third party logistics
provider; 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 current 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, 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; the impact of recent turnover
in the senior management team; the fact that a number of members of the
management team have less than one year of tenure with the Company, and
the current senior management team has not had a long period of time
working together; 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;
our ability to commence and complete the proposed rights offering and
related backstop commitment; 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-3
filed with the Securities and Exchange Commission on February 12, 2016,
and under the heading "Item 1A—Risk Factors" in our Annual Report on
Form 10-K and our Quarterly Reports on Form 10Q. 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.
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/20160307005476/en/
Source: Vince Holding Corp.