Vince’s net sales decreased in the fiscal third quarter, brought about by lower direct-to-consumer and wholesale sales.
The luxury fashion retailer’s net sales fell 4.7 per cent to $80.2 million, with its direct-to-consumer sales declining 8.3 per cent to $31.4 million and wholesales sliding 2.2 per cent to $48.8 million.
“While revenue fell slightly short of our expectations, primarily due to lower in-season reorders in our international wholesale business and lower than expected outlet channel sales, the underlying strength of the Vince brand continues to resonate with customers,” said David Stefko, interim CEO of Vince.
“While we remain prudent with our outlook given the shortened holiday selling season and the ongoing uncertainty around the consumer, we believe we are well positioned to deliver on our objectives for this year.”
The company began implementing a transformation program in October last year, which is expected to deliver over $30 million in savings over the next three years, including about $10 million of savings in the current fiscal year.
Vince said that as of the end of its third quarter, it is ahead of its full-year target.
For the fourth quarter, the company forecasts net sales to be down mid-single-digits to up low-single digits compared to $75.3 million in the year-ago period.
Vince estimates its full-year net sales to decrease in the low-single-digit range compared to $292.9 million in the prior year.
