Vince Holding Corp. reported unaudited results for the second quarter of fiscal 2015. Net sales decreased 10.4% to $80 million from $89.3 million in the second quarter of fiscal 2014.
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The wholesale segment decreased 21.6% to $58.3 million and the direct-to-consumer segment increased 44.7% to $21.7 million over the second quarter of fiscal 2014. Comparable store sales increased 13.4%, including e-commerce sales.
Gross profit was $20.8 million, or 26% of net sales, which includes a $14.4 million charge associated with the write-down of excess inventory and aged product to expected net realizable value.
Excluding the inventory write-down, gross profit was $35.2 million, or 44% of net sales. This compares to gross profit of $44 million, or 49.3% of net sales in the second quarter of fiscal 2014.
Selling, general, and administrative expenses were $27.3 million or 34.2% of sales. This included $2.9 million of net management transition costs related to executive severance and related costs.
Excluding these costs, selling, general and administrative costs were $24.5 million or 30.6% of net sales in the quarter. In the second quarter of fiscal 2014, selling, general and administrative costs were $24.1 million or 27% of sales, which included costs related to the company's July 2014 secondary offering.
Excluding the Secondary Offering costs, selling, general and administrative expenses were $23.5 million, or 26.3% as a percent of sales in the second quarter of fiscal 2014.
Operating loss was $6.5 million, compared to operating income of $19.9 million for the second quarter of fiscal 2014. Excluding the inventory write-down and net management transition costs, operating income for the second quarter of fiscal 2015 was $10.8 million. Excluding the Secondary Offering costs, operating income for the second quarter of fiscal 2014 was $20.5 million.
Net loss was $5 million, or $0.14 per diluted share, compared to net income of $10.5 million, or $0.27 per diluted share, for the second quarter of fiscal 2014.
Excluding the inventory write-down and net management transition costs, net income for the second quarter of fiscal 2015 was $5.2 million, or $0.14 per diluted share. Excluding the Secondary Offering costs, net income for the second quarter of fiscal 2014 was $10.8 million, or $0.28 per diluted share.
During the second quarter of 2015, the company opened one new store, ending the quarter with 42 company-operated stores. ■