Vince Holding Expects Q2 Sales To Be Relatively Flat To Down Low Single Digits, Projects Company Operating Margin To Decline Approximately 500-750 Basis Points

Author: Benzinga Newsdesk | June 18, 2024 07:08am

For the second quarter of fiscal 2024 the Company expects total company net sales to be relatively flat to down low single digits compared to $69.4 million in the second quarter of fiscal 2023. The Company expects second quarter fiscal 2024 total company operating margin to decline approximately 500 to 750 basis points compared to total company adjusted operating margin of 4.1% in the second quarter of fiscal 2023. This guidance assumes SG&A deleverage due to the reestablishment of the Company's short-term incentive compensation plan, as well as approximately a 160 basis point headwind from expense favorability last year due primarily to lease actions associated with the wind down activity with Rebecca Taylor, and approximately 130 basis point negative impact from severance expenses related to organizational changes. This outlook assumes continued gross margin expansion, despite the expected 190 basis point negative impact from royalty fees expected to be incurred in the period, however to a lesser degree as experienced in Q1 primarily driven by the channel mix assumption as the Company has now normalized its offprice wholesale business and expects to benefit from higher levels of fall wholesale shipments in Q2 fiscal 2024 given the strength of the orderbook.

Posted In: VNCE