Vince Holding: Sales decline but profit improves

For the third quarter, Vince Holding net sales decreased 4.7 percent to 80.2 million dollars driven by an 8.3 percent decrease in Vince brand direct-to-consumer sales and a 2.2 percent decrease in Vince brand wholesale sales.

The company’s net income increased to 4.3 million dollars or 34 cents per diluted share, while adjusted net income was 1.8 million dollars or 15 cents per share.

Commenting on the third quarter update, David Stefko, interim chief executive officer of VNCE said: "Our ongoing focus on driving a healthier, full-price business and executing on our Transformation Plan continues to yield strong results, as evidenced by the significant gross margin expansion and improved profitability we delivered in the third quarter compared to the prior year.”

Highlights of Vince Holding’s Q3 results

Gross profit for the quarter rose to 40.1 million dollars, or 50.0 percent of net sales and income from operations increased to 5.8 million dollars, while adjusted income from operations was 3.1 million dollars.

The company ended the quarter with 61 company-operated Vince stores, a net decrease of five stores since the third quarter of fiscal 2023.

Vince brand’s net sales decreased 4.7 percent to 80.2 million dollars in the third quarter. Wholesale segment sales decreased 2.2 percent to 48.8 million dollars and direct-to-consumer segment sales decreased 8.3 percent to 31.4 million dollars.

On September 12, 2022, the Company announced the strategic decision to wind down its Rebecca Taylor business to focus its resources on the Vince brand. The wind down of the Rebecca Taylor business was completed in the second quarter of fiscal 2023.

Vince Holding forecasts FY24 sales to decline low-single-digit

For the fourth quarter of fiscal 2024 the company expects total net sales to be down mid-single-digits to up low-single digits compared to 75.3 million dollars in the fourth quarter of fiscal 2023. The company expects operating margin to increase 200 basis points to 300 basis points.

For full year fiscal 2024 the company continues to expect net sales to decrease in the low-single-digit range and operating margin to increase 25 basis points to 50 basis points.