Vince Results Miss Estimates, Again Cuts Guidance; Stock Plunges 28%

(RTTNews) - Vince Holding Corp (VNCE), a contemporary fashion brand, on Thursday reported second-quarter net loss of $5 million or $0.14 per share compared with a profit of $10.5 million or $0.27 per share last year.

Excluding items, adjusted earnings for the quarter were $0.14 per share compared with $0.28 per share a year ago.

Revenues for the quarter were lower at $80 million compared with $89.3 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.23 per share on revenues of $86.3 million for the quarter. Analysts' estimates typically exclude special items.

Gross margin fell to 26% from 49.3% last year. Operating margin was negative 8.2% versus positive 22.3% a year ago.

For the full year 2015, the company now expects adjusted earnings of $0.31 to $0.37 per share on revenues of $285 million to $295 million. Earlier it expected earnings of $0.85 to $0.90 per share on revenues of $340 million to $350 million.

Analysts expect earnings of $0.84 per share on revenues of $342.3 million for the year.

The company said its guidance reflects weak sales in the domestic wholesale segment as well as the recent softer selling trends in its direct-to-consumer channel. It also expects gross margins to be under pressure owing to increased markdowns and assistance to wholesale partners.

As previously announced, Jill Granoff, chief executive officer, resigned from the company, and that Mark Brody has succeeded on an interim basis. Subsequently, David Stefko assumed the role of interim chief financial officer, a position previously held by Mark Brody.