Vince Holding Corp. shares plummeted 41% after the company said Friday that there's "substantial doubt" the luxury clothing brand can continue as a going concern, due to its inability to comply with the leverage ratio under its term loan facility. The company is taking steps to remediate "material weaknesses" in internal controls of its financial reporting, it said. Vince reported fourth-quarter net loss of $162.1 million, or $3.28 per share, compared with income of $1.8 million, or 5 cents per share, last year. The FactSet consensus was for a 4-cent loss. Sales for the quarter totaled $63.9 million, down from $81.8 million last year and below the $74.5 million FactSet consensus. Same-store sales including e-commerce were down 20.5% for the quarter due to traffic declines, fewer transactions, and lower average order value. Chief Executive Brendan Hoffman also said the company was hurt by delayed Spring product and off-price shipments. The company has suspended 2017 sales and EPS guidance, he said. Vince shares are down 79.4% for the past year while the S&P 500 index is up 15.1% for the period.
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