Vince Holding Corp (NYSE:VNCE) Q3 2019 Earnings Conference Call - Preliminary Transcript
Dec 12, 2019 • 04:30 pm ET
Ladies and gentlemen, thank you for standing by and welcome to Vince Q3 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions) I would now like to hand the conference over to Amy Levy, Vice President of Investor Relations. Thank you. Please go ahead.
Thank you and good afternoon everyone, welcome to Vince Holding Corp's Third Quarter Fiscal 2019 Earnings Conference Call. Hosting the call today are Brendan Hoffman, Chief Executive Officer, and Dave Stefko, Chief Financial Officer. Before we begin, let me remind you that certain statements made on this call may constitute forward-looking statements, which are subject to risks and uncertainties, that could cause actual results to differ from those that the company expect. Those risks and uncertainties are described in today's press release and in the company's SEC filings, which are available on the company's website. Investors should not assume that statements made during the call will remain operative at a later time and the company undertakes no obligation to update any information discussed on the call.
In addition, in today's discussion, the company is presenting its financial results in conformity
with GAAP and on an adjusted basis, the adjusted results that the company presents today are non-GAAP measures. Discussions of these non-GAAP measures and information on reconciliations of them to their most comparable GAAP measures are included in today's press release and related schedules, which are available in the Investors section of the company's website at investors.vince.com. After the prepared remarks, management will be available to take your questions for as long as time permits. Now I'll turn the call over to Brendan.
Brendan L. Hoffman
Thanks, Amy. Let me begin by sharing how excited we are to have recently completed the acquisition of Rebecca Taylor and Parker. With this transaction, we are bringing together three highly recognized distinct brands to create a global contemporary fashion group.We look forward to working with the Rebecca Taylor and Parker management team to grow these brands by employing similar strategies, that continue to drive the success we've accomplished at Vince. Turning briefly to third quarter performance, which closed prior to the acquisition, we delivered another quarter of strong top and bottom line results at Vince.,
Our net sales for the quarter grew 3.4% and gross margin expanded 150 basis points to 50.4%, adjusted net income despite higher tariff costs increased 28% to $8.7 million or $0.73 per diluted share, compared to net income of $6.8 million or $0.57 per diluted share in the same period last year. In our direct-to-consumer segment revenue increased 16% led by a 10% comp increase in four net new store openings since the end of the third quarter last year. We saw strong comps across all channels with continued strength in our e-commerce business, driven largely by an increase in transactions. We attribute our performance to strong response to our product, as well as marketing and segmentation strategies that we've been