Vince Q4 net sales increase 6.2 percent, wholesale drives growth

American luxury apparel and accessories retailer Vince Holding reported improved profitability and gross margin in its fourth quarter and fiscal year ended February 1, 2025, despite continued softness in its direct-to-consumer (DTC) segment.

In the fourth quarter, the company posted net sales of 80 million dollars, marking a 6.2 percent increase year-over-year. This growth was primarily driven by strength in the Vince wholesale channel, including a modest benefit from earlier shipments, partially offset by continued weakness in the DTC channel.

For the full fiscal year 2024, net sales totalled 293.5 million dollars, with gross profit increasing by approximately 12 million dollars and gross margin expanding by 400 basis points compared to FY2023.

CEO Brendan Hoffman commented, “Since returning to the CEO role earlier this year, my initial observations of the company have been reinforced. I've been impressed by the resilience and depth of our leadership team and by the progress that has been made in strengthening the foundation and overall business model.”

Looking ahead, Hoffman noted that Vince will recalibrate the focus and objectives of its transformation plan to better align with prevailing market conditions and to mitigate the effects of evolving tariff policies. Despite macroeconomic headwinds, he expressed confidence in the company's long-term trajectory and in the team’s adaptability and customer-centric focus.

Adjusted net income for the fourth quarter was 0.8 million dollars, or 6 cents per share. Gross profit reached 40.1 million dollars, representing 50.1 percent of sales, while gross margin improved by 470 basis points.

For the first quarter of fiscal 2025, Vince anticipates a net sales decline of approximately 5 percent and an adjusted operating margin decline of approximately 500 basis points compared to the prior year. Due to heightened uncertainty surrounding the impact and duration of current tariff policies, the company is not issuing full-year guidance for fiscal 2025.

Vince ended the quarter with 57 company-operated stores, a net reduction of six compared to the fourth quarter of fiscal 2023.