Vince Holding (NYSE: VNCE) reported Q2 EPS of ($1.28), $0.28 worse than the analyst estimate of ($1.00). Revenue for the quarter came in at $37 million versus the consensus estimate of $41.5 million.

Highlights for the second quarter ended August 1, 2020:

• Net sales decreased 59.9% to $37.0 million as compared to $92.2 million in the same period last year.
• Gross margin rate was 36.0% compared to 47.0% in the same period last year.
• Loss from operations was $14.0 million compared to an operating loss of $18.4 million in the same period last year. Excluding non-cash asset impairment charges, income from operations in the second quarter of fiscal 2019 was $1.7 million.
• Net earnings improved $4.5 million to a net loss of $15.1 million or $1.28 per share compared to a net loss of $19.5 million or $1.67 per share in the same period last year. Excluding non-cash asset impairment charges, net income in the second quarter of fiscal 2019 was $590,000 or $0.05 per diluted share.

David Stefko, Interim Chief Executive Officer and Chief Financial Officer, commented, “Looking back on our second quarter results, we began to rebuild momentum at Vince, following the initial impact of the pandemic, as consumer buying shifted to ecommerce and stores slowly re-opened. eCommerce sales for the Vince Brand grew over 60%, driven by heightened promotions as we move through inventory as well as a positive response to our merchandise assortment as our casual luxury offerings across categories are well-suited for the stay-at-home lifestyle. We have reprioritized our growth strategies to align with the near-term environment with a focus on e-Commerce initiatives, maintaining our strong connection with our customers and expanding our reach through our direct-to-consumer and wholesale presence. For Rebecca Taylor, we are excited about the anticipation among our wholesale partners as we prepare to relaunch the brand and return to our elevated casual and feminine flirty roots.”

Mr. Stefko continued, “In terms of liquidity, we continued to execute cash savings strategies across expense, capital expenditure, and working capital areas to align with the recovery of the business. Overall, we remain optimistic about our long-term potential as we leverage our iconic brands to drive global sales growth and enhanced profitability.”

Outlook

Due to the uncertainty related to the impact of the COVID-19 pandemic, the Company is not providing an outlook for fiscal 2020, as previously announced.

The COVID-19 pandemic remains volatile and continues to evolve on a daily basis, which could negatively affect the outcome of the measures intended to address its impact and/or our current expectations of the Company’s future business performance.

For earnings history and earnings-related data on Vince Holding (VNCE) click here.