Sliding Vince Holding Corp (NYSE:VNCE) Has a Dead Cat Bounce?

Vince Holding Corp (NYSE:VNCE)

Vince Holding Corp. (NYSE:VNCE) shares were trading over $7 for most of 2014. Today they closed below $2. Vince designs, manufactures, and markets fashion through wholesale and direct-to-consumer channels. They operate in both the men’s and women’s ranges. Vince has 34 retail stores and 14 company operated outlet stores. Additionally, sales are made through vince.com and other e-commerce websites. Globally, it sells through over 2,500 distribution points in 38 countries.

On February 13, 2017 Vince Holding Corp. (NYSE:VNCE) ended a consulting relationship with the company’s founders Rea Laccone and Christopher LaPolice. That ending was reportedly based on the results of an attempt to reset the brand and ignite the growth that Vince Holding Corp. had once enjoyed.

After falling below $2 in February, shares of Vince Holding Corp. (NYSE:VNCE) have experienced low volatility – the largest daily trading range had been less than $0.30. However, on Tuesday, with no news to act as a catalyst, VNCE shares exploded. On Monday VNCE shares ended the day at $1.40 but on Tuesday shares hit the $2 mark before retreating and closing at $1.55. Today VNCE gapped up to open at $1.55 and reached a high of $2.10. Volumes were over twice their listed average daily volume.

In August and December, two firms upgraded their rating for Vince Holding Corp. (NYSE:VNCE). Both Stifel and Piper Jaffray had “Hold” ratings on VNCE but each raised their rating on the shares to “Buy”. Neither ratings increase served as much of an incentive to the market and VNCE shares continued their slide. Vince Holding Corp. (NYSE:VNCE) reported increasing sales from 2012 when it posted a figure of $175.3 million. That figure increased YoY and peaked in 2015 when the firm posted a sales figure of $340.4 million. However in 2016 the sales figure dropped to $302.5 million. EPS for shareholders of VNCE followed a similar path. A, EPS loss of -$1.60 in 2012 decreased YoY and the company posted and EPS profit of $0.97 in 2015. But again, in 2016 that gain was narrowed to an EPS profit of $0.14 for VNCE shareholders.

3/22/2017
Ticker Symbol VNCE
Last Price a/o 4:37 PM EST  $                      1.95
Average Volume                    620,250
Market Cap (mlns)  $                    76.65
Sales (mlns) $286.10
Shares Outstanding (mlns) 49.45
Share Float (mlns) 48.77
Shortable Yes
Optionable Yes
Inside Ownership 56.87%
Short Float 6.94%
Short Interest Ratio 5.46
Quarterly Return -65.56%
YTD Return -61.73%
Year Return -77.21%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Author: James Marion

James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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