Vince Holding Corp (NYSE: VNCE) shares rose on stronger-than-expected results for its third quarter.
The New York-based global luxury apparel and accessories brand declared net sales increased 4.1% to $79.1 million from $76.0 million in the third quarter of fiscal 2016. Wholesale segment sales increased 3.5% to $53.0 million, primarily driven by an increase in off-price sales. This was partially offset by the expected reduced sell-in to the full-price wholesale channel.
Gross profit was $36.7 million, or 46.4% of net sales, compared to gross profit of $38.0 million, or 50.0% of net sales, in the third quarter of fiscal 2016
Net income was $3.5 million compared to $3.4 million for the third quarter of fiscal 2016, a figure which included a negligible benefit from income taxes due to the offsetting impact of the tax valuation allowance. The net income for the third quarter of fiscal 2016 included a $1.5 million income tax provision.
Earnings per diluted share was $0.41 for the third quarter of fiscal 2017, based on 8.6 million diluted weighted average shares outstanding. This compares to $0.68 per diluted share, based on 4.9 million diluted weighted average shares outstanding for the third quarter of fiscal 2016.
CEO Brendan Hoffman said “We are pleased with our results in the third quarter, which reflected double digit comparable store sales growth in both our full price stores and our eCommerce channel.”
Shares in Vince Holding leaped 23 cents, or 4.6%, to $5.23.
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