Global retail company Vince Holding has reported total net sales of $57.9m in the first quarter (Q1) of the fiscal year 2025 (FY25) – down 2.1% compared to $59.2m in Q1 FY24.
The decrease has been attributed to store closures and remodels impacting the direct-to-consumer segment.
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Vince CEO Brendan Hoffman stated that the “performance was relatively in line with our expectations […] As an organisation, we quickly pivoted all efforts in the latter portion of the quarter to develop and put into action mitigation plans in light of the evolving tariff policies.
“In short order we have diversified our supply chain, negotiated with vendors and leveraged other opportunities to mitigate near-term costs. As we look ahead, we will continue these efforts along with providing customers a high quality product offering and an engaging experience across our channels.”
The wholesale segment saw a marginal increase of 0.1% in sales to $30.3m, while the direct-to-consumer segment sales fell 4.4% to $27.6m.
Gross profit stood at $29.2m, a slight decrease from the $29.9m reported in Q1 FY24.
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By GlobalDataThe company cited higher freight and duty costs, changes in the wholesale channel mix, and increased distribution and handling expenses as the main contributors to the reduced gross margin rate. These were partially mitigated by lower product costs and reduced promotional activity.
Selling, general, and administrative expenses rose to $33.6m, driven by increased marketing, advertising, legal, IT and third-party costs, and expenses related to store remodels and relocations.
The company experienced a loss from operations of $4.4m, compared to a $5.6m income from operations in Q1 FY24.
Vince reported a net loss of $4.8m – a significant change from the net income of $4.4m in the same quarter of the previous year.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was reported at a loss of $3m, compared to a $1.5m loss in the preceding year. The number of company-operated Vince stores decreased by four and it ended the quarter with 58 stores.
At the end of Q1 FY25, Vince’s total borrowings were $34.7m, with $20.4m of excess availability under its revolving credit facility.
Net inventory stood at $62.3m – an increase from $56.7m at the end of Q1 FY24.
Looking ahead to the second quarter of FY25, Vince expects net sales to be down by a maximum of 3%, with adjusted EBITDA as a percentage of net sales ranging from 1% to 4%.
In May 2023, the company completed a strategic partnership with Authentic Brands Group, which includes a long-term licence agreement for the usage of intellectual property in line with Vince Holding’s current operations.
