Vince Holding Corp (NYSE:VNCE), the global luxury clothing and accessories brand, saw a slight increase in net sales but widening losses during the first quarter as the retailer looks to expand through bricks-and-mortar locations as well as e-commerce.
The apparel company boasts 45 full-price retail stores, 14 outlet stores and an e-commerce site. The company is headquartered in New York and operates a design studio in Los Angeles.
Highlights from the quarter included an increase in direct-to-consumer revenue that saw the company selling through Vince-branded retail rather than third-party merchandisers.
Net revenue for the three-month period ended May 4, increased 1.1% to $55.1 million, up from $54.5 million in 1Q 2018.
The company posted a net loss of $7 million, or $0.60 per share, compared to $5.6 million, or $0.49 per share, during the same period a year prior.
The 1Q results came in largely as expected, according to CEO Brendan Hoffman. “We continue to focus on our direct to consumer business through retail expansion and enhancements to our eCommerce channel,” he said in a statement.
Hoffman highlighted its women’s wholesale business and a subscription business as continuing to resonate with consumers and driving further market share gains.
“We are pleased with the increased momentum we are seeing in our business as weather improves and we begin to benefit from some early timing of shipments,” he said. “Overall, we believe we are gaining momentum with merchandising strategies and an elevated focus on marketing leaving us well positioned to deliver profitable growth over the long term.”
For full-year fiscal 2019, the retailer expects to see sales between $290 million and $300 million.
Shares of Vince slipped 0.8% after the bell in New York to $13.90.
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