Published
Dec 15, 2020
Reading time
2 minutes
Download
Download the article
Print
Text size

Vince reports completion of third lien credit facility, expects 34% decline in sales

Published
Dec 15, 2020

New York-based fashion company Vince Hold Corp. announced on Monday that it has secured $42.3 million in excess availability under its revolving credit facility. The group also postponed the reporting of its Q3 financial results, but stated that it anticipates a decrease of 34% in its quarterly sales.


Vince expects to report its Q3 sales on December 21 - Instagram: @vince

 
Vince expects its net sales for the third quarter ended October 31, 2020, to total $69.0 million, down from $104.5 million in the same period in the previous year. Gross margin rate for the quarter is predicted to be 45.9%, compared to 48.8% in the prior-year period.
 
“The third quarter experienced sequential improvement in direct-to-consumer sales and gross margin, which continued into the fourth quarter as we entered the holiday season. At the same time, we continued to tightly manage our expenses,” commented Vince interim CEO and CFO David Stefko in a release.

Concluded on December 11, the company’s new $20 million third lien credit facility was negotiated with SK Financial Services, an affiliate of Sun Capital Partners, Inc., whose affiliates own around 72% of Vince’s common stock.
 
The company used proceeds from the new deal to pay down the borrowings under its existing revolving credit facility. The brand has also been able to make amendments to this arrangement, as well as to its term loan credit facility, waiving certain amortization payments, lowering the fixed charge coverage ratio, and extending the applicability of certain revised eligibility criteria for trade receivables, among other changes.
 
In the second quarter ended August 1, 2020, the impact of the Covid-19 pandemic led the company’s net sales to drop 60% year over year to $37 million, down from $92.2 million. The group’s net loss for the quarter came to $15.1 million, or $1.28 per share, compared to a net loss of $19.5 million, or $1.67 per share, in the same period last year.
 
Vince intends to report its full third-quarter financial results on December 21, 2020.

Copyright © 2024 FashionNetwork.com All rights reserved.