Vince Holding (NYSE: VNCE) reported Q4 EPS of ($0.48), $0.13 worse than the analyst estimate of ($0.35). Revenue for the quarter came in at $74.8 million versus the consensus estimate of $77.7 million.

Preliminary highlights for the fourth quarter ended January 30, 2021:

• Net sales decreased 28.4% to $74.8 million as compared to $104.4 million in the same period last year reflecting a 20.4% decrease in Vince brand sales and a 68.9% decrease in Rebecca Taylor and Parker.
• Gross margin rate was 36.9% compared to 44.2% in the same period last year.
• Loss from operations was $3.9 million compared to a loss from operations of $3.3 million in the same period last year. Excluding costs associated with the acquisition of Rebecca Taylor and Parker and non-cash asset impairment charges, adjusted loss from operations in the fourth quarter of fiscal 2019 was $0.3 million.
• As described below, the Company has not yet completed its financial closing procedures with respect to the analysis of a non-cash deferred tax item, which we expect will have an impact of increasing our provision for income taxes and net loss, resulting in an increase in loss per share between $0.10 and $0.15 for the fourth quarter. Excluding the impact of such item, net loss was $5.7 million or $0.48 per share compared to a net income of $51.7 million or $4.29 per diluted share in the same period last year. Excluding a TRA adjustment of $56.0 million, transaction and related costs associated with the acquisition of Rebecca Taylor and Parker and non-cash asset impairment charges, adjusted net loss in the fourth quarter of fiscal 2019 was $1.2 million or $0.10 per share.
• Subsequent to the fourth quarter, the Company entered into a Sixth Amendment to its existing term loan credit facility thereby extending the waiver of the fixed charge coverage ratio measurement until January 28, 2023 in order to create more flexibility as the Company recovers from the pandemic.

“As the world recovers from the COVID pandemic and life begins to normalize, we are excited about the future of our brands” commented Jack Schwefel, Chief Executive Officer. “Vince is distinctly positioned as a brand that embodies effortless sophisticated style. We will continue to leverage Vince’s brand equity and deep consumer connections to expand awareness and drive growth with an increased focus on the direct-to-consumer channel. Rebecca Taylor also possesses a strong DNA and as we return to the brand’s heritage in a modernized way, we believe we can achieve a similar level of recognition that was recaptured by Vince. I look forward to working with the teams as we execute an omni-channel strategy and data-driven merchandising and marketing approach to enable each of these brands to achieve their long term potential.”

Dave Stefko, Chief Financial Officer stated, “We saw sequential improvement in Vince during the fourth quarter led by our wholesale business. Within the wholesale channel, retail sales continue to improve as we believe we are taking share within the contemporary luxury category. At Rebecca Taylor, the decrease in sales reflect a resetting of the brand including an elimination of one of our seasonal collections. We are enthusiastic about the relaunch for spring which has been received with favorable response. As we continue to navigate through the recovery of the macro-environment, we will remain focused on maintaining disciplined cost controls and optimizing liquidity as we position our brands for the future.”

Outlook

Due to the uncertainty related to the impact of the COVID-19 pandemic, the Company is not providing an outlook for fiscal 2021.

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.