VNCE

07-Mar-16 07:36 ET
Vince Holding guides FY16 above consensus, guides FY17 EPS below with rev in-line  (6.90)
  • Sees FY16 adj. EPS $0.32-0.34 vs $0.19 Capital IQ Consensus; sees revs $300.5-302.5 mln vs $288.98 mln Capital IQ Consensus Estimate.
    • “We were pleased to see our fiscal 2015 preliminary net sales exceed our most recent guidance. Our results benefited from the work we have done with our wholesale partners to reduce initial orders which led to higher full-price sales and reduced markdown allowances. We also saw favorable response to some of our pre-Spring product contribute to the better-than-expected sales and margin results.”
  • Sees FY17 EPS $0.00-0.08 vs $0.24 Capital IQ Consensus; sees revs $290-305 mln vs $293.80 mln Capital IQ Consensus, including revenues from 6 new retail stores and comparable sales growth inclusive of ecommerce sales in the flat to low-single digit range. The Company expects sales to decrease in the mid- to high-single digit range for the first half of the year and to increase in the low- to mid-single digit range in the second half of the year as compared to the same prior year periods; Gross margin of ~47%.
    • “Looking ahead, we will continue to make investments in talent as well as other strategic initiatives designed to enhance the product and further strengthen our brand and market leadership position. While we anticipate that these investments will drive improved financial performance in late 2016, we are positioning ourselves for a difficult first half of the year as the retail industry remains challenging and the product assortment will not reflect our go-forward vision for the brand until the latter part of the year.”

Sells 40 percent of VNCE holding $7.64 +$3.02 based on FY17 guidance of only $0.08 to $0.24.

VNCE had tail resistance at $7.68

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