For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Vince Holding Corp’s (NYSE:VNCE) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.
Commentary On VNCE’s Past PerformanceVNCE recently turned a profit of US$62.25m (most recent trailing twelve-months) compared to its average loss of -US$16.89m over the past five years.
Over the last few years, Vince Holding top-line expansion has outpaced earnings and the growth rate of expenses. Though this has led to a margin contraction, it has lessened Vince Holding’s earnings contraction. Eyeballing growth from a sector-level, the US luxury industry has been growing, albeit, at a subdued single-digit rate of 5.86% in the past year, and 6.43% over the past five. This growth is a median of profitable companies of 25 Luxury companies in US including Delta Apparel, Lakeland Industries and Hanesbrands. This shows that any uplift the industry is enjoying, Vince Holding has not been able to reap as much as its average peer.In terms of returns from investment, Vince Holding has invested its equity funds well leading to a 89.79% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 30.11% exceeds the US Luxury industry of 6.78%, indicating Vince Holding has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Vince Holding’s debt level, has increased over the past 3 years from 19.22% to 36.76%.
What does this mean?
Though Vince Holding’s past data is helpful, it is only one aspect of my investment thesis. I recommend you continue to research Vince Holding to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for VNCE’s future growth? Take a look at our free research report of analyst consensus for VNCE’s outlook.
- Financial Health: Is VNCE’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.