Vince Holding Corp Q3 sales increase, but swings to loss

US fashion group Vince Holding Corp has reported a 12.7 percent increase in net sales in the third quarter of the year, but swung to a loss.

The group made net sales of 98.6 million dollars in the quarter ended October 29, up from 87.5 million dollars a year earlier.

CEO Jack Schwefel said the growth reflected continued growth from its namesake Vince brand “as we saw nice reception across our men’s and women’s assortment particularly as we transitioned into the cooler fall season”.

Net sales at Vince rose 14.4 percent to 89.7 million dollars, offsetting a 3 percent drop in wholesale sales. On a less bright note, net sales at Rebecca Taylor and Parker fell 2.2 percent to 8.9 million dollars.

Rebecca Taylor wind-down hits bottom line

In September, the group announced it would be winding down its Rebecca Taylor business to focus its resources on the Vince brand.

Schwefel said at the time that “the increased headwinds from the range of macroeconomic and pandemic related issues in the industry that Rebecca Taylor in particular has faced over the past two years” has led the group to the “difficult decision” to exit the business.

And that process has had a negative impact on third-quarter earnings, with the group swinging to a net loss of 5.2 million dollars from a profit of 2.2 million dollars a year earlier.

Schwefel noted that the group continues to “navigate the ongoing challenging consumer environment”, and has taken “aggressive action” to reduce its inventory balance to better position it as it begins preparing for its next fiscal year.

“We believe these actions combined with our previously announced strategic decision to exit the Rebecca Taylor business, as well as our focus on driving further efficiencies and enhanced disciplines across our organization, will position Vince for long-term profitable growth,” he said.