investment in Balenciaga Purses the company

Premium Price For This Luxury Offering Vince Holding, or also known as Apparel Holding Corp. (VNCE), made its public debut on Friday, November 22. Shares of the diversified apparel company known from fashion brand Vince ended their first day with gains of 43.3%.
Given the premium valuation for this "affordableluxury" brand, I would be very cautious. This is especially true in combination with slower comparable store sales and rather slim profit margins. The Public OfferingApparel Holding is a diversifie apparel design manufacturing company including the labels Vince, Rebecca Taylor, David Meister, Sag Harbor, My Michelle and XOXO.
Following the public offering and the "restructuring" Vince will represent the company's operations, making an investment in Balenciaga Purses the company really an investment in Vince. Vince is the modern, fastgrowing apparel brand. The company was founded back in 2002, focused on women's knits and cashmere sweaters, being sophisticated as well as luxurious.
The design, high quality and clean aesthetic has boosted customer loyalty and fueled growth into other areas, including men. Further growth is seen abroad as well as through its  commerce channels. Vince sold 10 million shares for $20 apiece, thereby raising $200 million in gross proceeds. All shares were sold by the company, with no shares being offered by selling shareholders.
Initially, bankers and the firm set an initial price range of $17$19 per share. Shares were eventually sold above the high end of the preliminary initial public price range. Some 28% of the total shares were offered in the public offering. At Friday's closing price of $28.66 per share, the firm is valued at $1.04 billion.
The major banks that brought the company public were Goldman Sachs (NYSE:GS), Baird, Bank of America/Merrill Lynch (NYSE:BAC), Barclays, JPMorgan (NYSE:JPM) and Wells Fargo Securities (NYSE:WFC), among others. ValuationWith the company being focused on its Vince brand it is diversifying its channels through which it sells its products to customers. Roughly 70% of sales are being achieved through sales toward premier department stores as well as specialty stores. This includes the buildout of special indepartmentstores.

On top of that, Vince has 27 stores, 21 of which are fullprice stores with the remainder being outlet locations. The company easily sees room for 100 stores in the US. The ecommerce operations are very significant as well, making up nearly a fifth of total sales. The differentiated image and strong customer loyalty combined http://www.balenciagatop.com/ with availability at top department stores has done very well for the business. Apparel can be found at Nordstrom, Saks Fifth Avenue and Bloomingdale's, among others.