US fashion group Vince Holding Corp has reported a 7.8 percent drop in sales in the fourth quarter as its losses widened.
It comes the same day Authentic Brands Group (ABG) announced it entered into a definitive agreement to acquire the intellectual property of the Vince brand.
Vince Holding Corp said Monday it made sales of 91.3 million dollars in the three months ended January 28, down from 99 million dollars a year earlier.
That came as its net loss widened to 11 million dollars from 2.7 million dollars the prior year.
For the full year, sales increased 10.8 percent to 357.4 million dollars, while its net loss widened to 38.3 million dollars from 12.7 million dollars.
Vince Holding Corp CEO Jack Schwefel described 2022 as a “challenging year”, but said the company is “well positioned to drive improved results and long-term success”.
He also said the company “substantially completed the wind down of the Rebecca Taylor business” in the quarter “and continued to take actions with respect to our inventory balance to end the year in a healthier position”.
The company announced last September it would be closing down its Rebecca Taylor business to focus its resources on the Vince brand.
“As we look ahead, we will continue to operate with discipline while staying focused on our long-term strategic initiatives while leveraging our recent agreement with ABG,” Schwefel said.
This is the latest in a spate of acquisitions by ABG in recent years as it continues to grow its fashion empire.
Last month, ABG confirmed it would acquire Quiksilver owner Boardriders. Other notable acquisitions in recent years by the group include upmarket label Ted Baker and sportswear giant Reebok.