Vince Holding Corp. (NYSE:VNCE) shares soared Thursday after the company reported better-than-expected second-quarter results on Wednesday evening.
Here’s a look at the details that sent the luxury clothing retailer’s stock flying.
- VNCE stock rallies on Q2 earnings. Check out the real-time chart.
VNCE Q2 Results:
Vince reported quarterly earnings of 38 cents per share which beat the analyst estimate for losses of 10 cents.
Quarterly revenue came in at $73.24 million which beat the Street estimate of $72.88 million.
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Vince CEO Brendan Hoffman said second quarter performance reflects “disciplined execution and strong customer reception” to product offerings during an elongated full-price selling season.
Gross profit reached $36.9 million, or 50.4% of net sales, up from 47.4% last year, due to lower product costs, higher pricing and less discounting.
Bull Case / Bear Case
The Finsee account on X shared insight into how Vince was able to deliver the impressive earnings beat.
“A massive, one-time payroll tax credit (ERC benefit) of $7.2 million drove a spectacular beat on profitability, masking a slight decline in revenue,” Finsee wrote.
However, the post also pointed to margin growth and recovery in the underlying business.
“More importantly, the underlying business demonstrated significant strength. Gross margins expanded considerably due to better pricing and lower costs, and the direct-to-consumer (DTC) segment returned to growth,” Finsee wrote.
Investors Pile In:
Vince stock skyrocketed on heavy trading volume Thursday, according to data from Benzinga Pro. More than 60 million shares had already been traded, compared to the stock’s 100-day average volume of less than 54,000 shares.
VNCE Price Action: Vince stock was up 106.6% at $3.43 on Thursday, according to Benzinga Pro.
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