Stifel maintains a Hold rating on Vince Holding (NYSE: VNCE) following the retailer's Q1 report on Thursday evening.

Analyst Richard Jaffe noted that VNCE's Q1 EPS of $0.06 was 1 cent above the firm's and consensus EPS estimate. The analyst noted that lowered FY15 EPS guidance (from $1.00 - $1.05 down to $0.85 - $0.90) compared unfavorably to the firm's estimate.

Jaffe noted, Management indicated that Vince’s department store partners are increasing their focus on inventory management by reducing their upfront buys and placing greater emphasis on in-season reorders to achieve faster turns and better sell-throughs. In addition, store expansion in the department store space is shifting toward off-price. While Vince offers a portion of its merchandise in the off-price channel it plans to reduce its off-price penetration and increase full-price selling. Both of these factors will hold back wholesale growth in 2015.

VNCE also plans to have a greater focus on product. Jaffe commented, The company plans to refocus its efforts on returning to its core/heritage product. These are the categories that have driven strength in the past at higher margins. In addition, the company plans to modify the pricing on its handbag assortment. The Fall collection will have improved features and functionality with a price that reflects a better value proposition. The company also believes that footwear represents a growth opportunity both in stores and online. More space will be dedicated in stores to the footwear collection. By Fall, women’s footwear will be available in over 500 doors and men’s in over 150 doors.

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