Driven by wholesale and direct-to-consumer segments sales, revenues at fashion retailer Vince Holding, surged 20 per cent year on year for the third fiscal quarter ended November 1, 2014.
Vince said in third quarter of 2014, its net sales climbed 20 per cent to $102.9 million from $85.8 million in the third quarter of 2013.
Wholesale segment revenues in the reporting quarter rose 17.3 per cent from a year ago quarter to $78.9 million, while direct-to-consumer segment sales zoomed 30.2 per cent to $24.0 million.
Comparable store sales grew slower by 5.2 per cent over the third quarter of 2013 and including ecommerce sales, comparable sales increased 8.0 percent year-on-year.
In the quarter under review, gross profit too propelled 21.4 per cent to $50.6 million from $41.7 million in the third quarter of 2013.
While, gross profit as a percentage of net sales went up 50 basis points to 49.2 per cent from 48.7 per cent from last year’s third quarter.
Third quarter of 2014 SG&A expenses totalled to $25.8 million or 25.1 per cent of sales as against $24.2 million or 28.2 per cent of sales in the prior year third quarter.
Operating income expanded massively by 41.6 per cent to $24.8 million or 24.1 per cent of sales from $17.5 million or 20.5 per cent of sales in third quarter of 2013.
Vince Holding reported a substantial turnaround in net income which amounted to $13.3 million or 12.9 per cent of sales, compared to a net loss of $2.4 million for the third quarter of 2013.
Resultantly, diluted earnings per share for the third quarter of 2014 were $0.35 as against diluted loss per share of $0.09 for the third quarter of 2013.
Vince voluntarily paid down $17.1 million of debt during the third quarter of fiscal 2014 and $47.5 million during the thirty-nine week period of fiscal 2014.
However, inventory at the end of the reporting quarter rose significantly to $52.7 million versus $36.2 million at the end of the third quarter of 2013.
“The planned year-over-year inventory hike was driven primarily by 10 net new store openings since the third quarter of last year,” the fashion retailer said.
Increase in-transit inventory as a result of its operational improvement initiatives, an expanded replenishment program and overall global sales growth projections, also added to inventory hike.
Capital expenditures during the third quarter of 2014 totalled to $8.0 million, $3.8 million of which was attributable to new and remodelled stores and shop-in-shop build-outs.
