Vince Holding Corp (NYSE:VNCE) rallied Thursday after reporting net income that almost doubled in the third quarter on retail growth and e-commerce business momentum.
The New York-based luxury retailer said in a press release that net income for the three months ended November 3 increased to $6.8 million, or $0.57 per diluted share, from $3.5 million, or $0.41, a year earlier. Net sales climbed to $83.5 million from $79.1 million.
Shares climbed 10% to US$11.19 in Thursday’s New York Stock Exchange trading.
READ: Vince Holding shares fall after 2Q loss on weakness in wholesale segment linked to overhaul of department store business
Same-store sales including e-commerce climbed more than 14%, buoyed by an increase in transactions, according to Vince. That gain was partially offset by a lower average unit retail related to product mix. The gross margin widened by 2.5 percentage points to 48.9%.
“Our third-quarter results reflect continued strength across several areas of our business,” CEO Brendan Hoffman said in a statement.
The company said it opened two stores during the third quarter and signed a lease for a store in midtown Manhattan across from Rockefeller Center.
In September, Vince reported a second-quarter loss, citing weak wholesale sales linked to an overhaul of its store business.
Established in 2002, Vince is a luxury brand whose apparel and accessories are inspired by its California origins. The company operates 45 full-price retail stores, 14 outlet stores and its e-commerce site, vince.com.
Contact Dennis Fitzgerald at dennis@proactiveinvestors.com