Good morning. My name is Emily and I will be your conference operator today. At this time, I would like to welcome everyone to the Vince Holding Corp., First Quarter 2017 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. Amy Levy [ph], Vice President of Investor Relations, please go ahead.

Thank you, and good morning, everyone. Welcome to Vince Holding Corp’s first quarter fiscal 2017 earnings conference call. Hosting the call today is 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 expects. 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 the 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. After the prepared remarks, management will be available to take your questions for as long as time permit. Now, I'll turn the call over to Brendan.

Thank you, Amy, and thank you everyone for joining us today. Our first quarter results were largely in line with our expectations. As anticipated our wholesale sales during the quarter were impacted primarily by the elimination of our summer delivery. While we are still facing challenges in this segment, we are making progress and continuing to evaluate ways to optimize our presence in this channel, including potentially rationalizing our points of distribution. We also continue to refine our off price channel distribution as it remains a strong area for the retail industry overall. We believe we can drive profitable growth in this channel without sacrificing our brand’s integrity. Our DTC channel we saw strong performance in our e-commerce business with gross demand of 25% in the quarter and further acceleration in the second quarter to-date. We also saw trends in our full price retail stores dramatically improve in the first quarter and so far into the second quarter. We attribute this to better management of our product offering, promotions and marketing. Turning now to product, while we have brought back the quality and DNA inherent to the Vince brand, we will continue to evolve our product offering to ensure that we are aligning the assortment with the needs of our customers. We plan to continue to offer the season less layering pieces that puts Vince on the map, but we will build more variation within each category, as well as infuse more [feminity] [ph] into the line. In addition we are under penetrated in certain categories where we see strong potential and where we know we have core competencies. By expanding the offering in these categories including dresses and bottoms we can round out the assortment and elevate the overall presentation of our collection. Finally, while we have an opportunity…

Thank you, Brendan. First quarter net sales decreased 14.2% to $58 million, compared to $67.6 million in the prior year period. Our wholesale channel sales were down 20.9% to $35.4 million, primarily due to the elimination of our summer delivery. Our direct-to-consumer segment sales decreased 1% to $22.6 million in the first quarter and comparable sales including e-commerce declined 5.7%, reflecting a decrease in average order value. E-commerce has been a positive for the business with demand up double-digits in the first quarter, while retail stores continue to see improved performance. This momentum has continued into the second quarter. Gross profit in the first quarter was $25.6 million or 44.1% of net sales, this compares to $28.3 million or 41.8% of net sales in the first quarter of last year. The increase in the gross profit rate for the first quarter of 2017 reflected a favorable channel mix shift and decreased discounts from the liquidation of excess inventory in the first quarter of fiscal 2016, partially offset by higher allowances and supply chain cost. Selling, general and administrative expenses in the quarter were $33.8 million, or 58.2% of net sales, this compares to $31.8 million or 47% of sales for the first quarter of last year. The growth in SG&A dollars for the first quarter of fiscal 2017 was due to increased cost associated with the remediation of our new systems and higher product development, marketing and new store cost, partially offset by a decrease in incentive compensation, consulting and temporary labor cost. In addition, transition, severance and other strategic costs in 2016 did not recur in the first quarter of 2017. Operating loss was $8.2 million compared to operating loss of $3.5 million for the first quarter of fiscal 2016. Provision for income taxes for the first quarter of…

Thank you everyone for your continued support and interest. We look forward to updating you on our Q2 results in early September.

This concludes today's conference call. You may now disconnect.