Good morning. My name is Liandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vince Holding Corp. Second Quarter 2017 Earnings Results Conference 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. [Ph] Amy Levy (00:32), President of Finance and Investor Relations, you may begin your conference.

Thank you, and good morning, everyone. Welcome to Vince Holding Corp.’s second 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 permits. Now, I'll turn the call over to Brendan.

Thank you, Amy, and thank you everyone for joining us today. During the second quarter sales were roughly flat in the wholesale and retail segments, with sequential improvement compared to the first quarter. In our wholesale business, sales were down approximately 1%. We saw some disruption in receipt flows related to our liquidity challenges, which have since improved as we continue to work with our suppliers. With the funds we expect to receive as a result of the completion of our rights offering, we anticipate disruptions of our receipt flow will minimize and expect that most of the products which shifted out of the second quarter will ship in the third quarter. Sales in our off-price channel increased as we had higher quality inventory this year compared to last year, which enabled us to be less promotional. Importantly, the quality of inventory in this channel has improved and we were much more profitable within the comparable prior year period. As you’ll recall in my – in last year’s second quarter, we were still working to move through excess and aged inventory, and therefore we were heavily discounted in this channel. We believe we are now building back our presence in this channel in a healthier, more brand appropriate way at improved margins. As we have mentioned previously, we have been working on ways to rationalize our department store distribution and strengthen this business overall. We evaluated a number of options for this channel and ultimately determined that the brand was too fragmented in some areas and that we could create a stronger presence of fewer, more focused points of distribution. Therefore, I am pleased to announce we have entered into a limited distribution arrangements for non-licensed products with both Nordstrom and Neiman Marcus beginning in fiscal 2018. These partnerships are…

Thank you, Brendan. Second quarter net sales were roughly flat at $60.8 million, compared to $60.7 million in the prior year period. Our wholesale channel sales were down 0.9% to $39.3 million, primarily due to a reduction in international sales. In addition, as Brendan mentioned, we saw an expected disruption in receipt flow throughout the quarter, which impacted sales both in the U.S. and internationally. Over the past few months we have worked closely with many of our vendors and partners and are pleased to have recently seen our receipt flows begin to normalize. With our completed rights offering, as well as the recent amendments to our credit facilities, we anticipate that we will get back to normal terms with our suppliers in the near future, and therefore, we anticipate disruptions to our receipt flow will minimize beginning in the third quarter. Our direct-to-consumer segment sales increased 2.3% to $21.6 million in the second quarter, while comparable sales including e-commerce declined 0.8%, reflecting a decrease in average order value. We saw sequential improvement in sales in our direct-to-consumer segment, with high single-digit growth in our full price and e-commerce businesses combined. Gross profit in the second quarter was $25.6 million or 42% of net sales. This compares to $27.4 million or 45.1% of net sales in the second quarter of last year, a 310 basis point decline. Note that last year's gross profit reflected a $1.9 million benefit or 310 basis points from favorable adjustments to inventory reserves. The gross profit rate for the second quarter of 2017 also reflected a higher mix of markdowns in the direct-to-consumer segment and unfavorable product and supply chain costs, which were partially offset by a decrease in discounts and allowances in the wholesale segment. Selling, general and administrative expenses in the quarter were…

Thank you everyone for your continued support and interest. We look forward to updating you on our Q3 results in early December.

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