Vince Holding Co. fell the most in the nearly two years its shares have traded publicly after posting second-quarter profit that trailed analysts’ estimates and cutting its full-year forecast.
Profit in the quarter through Aug. 1 was 14 cents a share, excluding some items, the New York-based clothing maker said Thursday in a statement. Analysts estimated 23 cents.
Interim Chief Executive Officer said Vince saw "weakness" in its wholesaling business, causing inventory to pile up. The company, trying to reduce sales to off-price retailers, has now decided to dispose of the "vast majority" of its prior-year products, he said.
Because of that plan, adjusted profit this year will be 31 cents to 37 cents a share, down from a previous forecast of 85 cents to 90 cents, the company said.
The shares plunged 43 percent to $5.24 at the close in New York, the biggest decline since its initial public offering in November 2013. Vince has now slid 80 percent this year.