Vince.(VNCE) - 2018 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2018, net sales increased by 4.2% to $77.8 million compared to $74.6 million in Q4 2017 [34] - Adjusted operating income for Q4 2018 was $3.6 million, a significant improvement from an adjusted operating loss of $1.5 million in Q4 2017 [12][40] - Net income for Q4 2018 was $0.7 million or $0.06 per diluted share, compared to $74.5 million or $6.41 per diluted share in the same period last year [41] Business Line Data and Key Metrics Changes - Wholesale channel sales increased by 4.8% to $40.3 million, while direct-to-consumer segment sales rose by 3.6% to $37.5 million in Q4 2018 [34][36] - Comparable store sales for the 13-week period grew by 3.1%, driven by e-commerce strength [12] Market Data and Key Metrics Changes - The company experienced strong acceptance of the Vince brand in international markets, particularly in Europe and Asia [18] - A new shop-in-shop opened in London with Selfridges resulted in a fourfold increase in weekly sales [19] Company Strategy and Development Direction - The company is focused on growing its direct-to-consumer business, increasing international presence, and testing new product categories [13][45] - A strategic consulting firm has been engaged to help develop a multiyear growth strategy [10][31] Management's Comments on Operating Environment and Future Outlook - Management noted a slow start in February but observed improved business trends in March, with positive responses to spring deliveries [13][48] - For fiscal 2019, the company expects net sales to range from $290 million to $300 million, reflecting mid-single-digit growth [45] Other Important Information - The company plans to continue enhancing its e-commerce platform and mobile app to drive sales [16][17] - Capital expenditures for 2019 are expected to be between $4 million to $4.5 million, primarily for new stores and refreshing existing locations [50] Q&A Session Summary Question: What product extensions are you most excited about for the balance of the year? - Management expressed excitement about diversifying into home, fragrances, and handbags, while maintaining focus on core apparel business [55][56] Question: How do you think about the allocation of CapEx this year? - Most of the CapEx will be directed towards new stores and refreshing existing locations [60]