Vince Holding Corp.’s shares spiked nearly 20 percent after the company raised its guidance for the full year and announced aggressive global expansion plans as it prepares to launch a men’s footwear line in July.
The stock rose more than 17 percent, or $4.49, to $32.51 in afternoon trading after the firm’s result for the period beat the Street’s forecasts.
On Vince’s upcoming men’s shoe line, Jill Granoff, chairman and CEO, said the initial reviews from fashion editors and retail partners have been positive.
“Right now, we’re looking at between 25 and 30 stores for the initial launch, which is actually more than double what we had for our women’s launch, but it’s important to really learn about which lines sell the best,” Granoff said during a conference call with analysts and investors.
“What we’re most pleased with is that [the new men’s line] has been picked up by our key department store partners in line with where our women’s footwear is sold,” she added.
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Vince raised its guidance for the full year following the solid quarter. It increased its diluted earnings per share guidance to between 88 cents and 92 cents, from between 85 cents and 90 cents.
“In our retail channel, we continue to grow our highly successful retail footprint and we are on track to open seven to eight new stores in fiscal 2014,” Granoff said, noting that the pipeline for openings in 2015 remains strong.
“We opened our first new store of fiscal 2014 two weeks ago on Newbury Street in Boston and we opened our very first men’s-only store in the Meatpacking District of New York earlier this week. This will be a great learning route as we continue to optimize our men’s business.”
“Our women’s footwear business is doing very well…It is sold and developed in partnership with Brown Shoe Co., who is our licensing partner on this,” Granoff said, noting that Brown cited strong growth for the line during its recent earnings call to discuss its first-quarter results.
“We’re now sold in over 300 high-end doors worldwide. We’ve increased our distribution significantly,” she said. The company expects to achieve total net sales of $325 million to $340 million for the full year, including revenues from new retail locations and comparable-store sales growth in the high-single-digit to low-double-digit range.
Vince reported first-quarter diluted EPS of 4 cents, beating analysts’ expectations for flat earnings for the period.
Revenue for the quarter was $53.5 million versus the consensus estimate of $48.77 million.