Vince seeing sales decline since going public

Vince has long been one of the most successful contemporary fashion brands in the U.S. Since going public in 2013, the company continued to see successful profits and sales growing in the high single and double digits very quarter. For the first time in the company's history, they actually saw a decline in sales. Overall net sales declined 10.4. percent year-over-year to 80 million in the second fiscal quarter, with a net loss of 5 million dollars.

The biggest decline was in Vince's wholesale business which saw a loss of 21.6 percent or 58.3 million dollars. Vince has been moving away from wholesale for some time due to department stores shifting their business model towards one where they buy less product and reorder only when needed. This new business model does not bode well for Vince's business in the long run.

Vince saw a rough first fiscal quarter

Sell throughs and re-orders fell in the second quarter, and the company's off-priced retailers. This year, Vince disposed of a lot of product as they attempt to reduce sales from off-priced retailers. Vince's profits were also weighed down by severance for their executives and their second public offerings. Net income would have totaled 5.2 million dollars if it weren't for the inventory write down and pay for their transition to new management.

On a positive note, Vince's sales through their own retail stores increased by 44.7 percent to 21.7 million dollars, and comparable stores are up 13.4 percent. Vince currently has 42 stores in operation.

Despite the decline in wholesale, Vince is moving forward with store openings as planned because their own stores are still doing so well. Vince is currently making plans improve their offerings and tighten their inventory and procurement practices. Investors are very displeased with Vince's performance, with shares for the company falling to 5 dollars and 79 cents last Friday.

photo:brunetteofvantesfiles.com