Global retail company Vince Holding disclosed a 1.3% drop in total net sales, amounting to $73.2m for the second quarter (Q2) of fiscal 2025 (FY25), down from $74.2m during the same period in FY24.
The decline in sales primarily stemmed from a 5.1% reduction in wholesale revenue, partially offset by a 5.5% rise in direct-to-consumer sales.
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The decrease in wholesale figures largely resulted from altered scheduling of autumn product deliveries compared to the previous year, influenced by earlier uncertainties surrounding tariff policies and their effects.
During the Q1 result announcement, Vince stated that it expected net sales to fall by a maximum of 3% in Q2 FY25.
Vince’s gross profit for Q2 stood at $36.9m, representing 50.4% of net sales, an improvement from the previous year’s $35.1m, or 47.4% of net sales.
The growth in gross margin rate was attributed to a 340 basis point improvement due to reduced product costing and higher pricing, along with 210 basis points from lower discounting.
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By GlobalDataThe company’s selling, general and administrative expenses declined to $25.8m in Q2 FY25 from $34.0m in Q2 FY24, largely due to payroll tax credit payments received from the US Department of the Treasury under the Employee Retention Credit programme.
Net income rose to $12.1m or $0.93 per diluted share, compared to $0.6m or $0.05 per diluted share in the same period of the previous year.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached $6.7m, up from $2.7m in fiscal 2024.
The company operated 58 Vince stores at the close of Q2, which reflects a net reduction of three stores from Q2 FY24.
In Q3 of FY25, Vince anticipates that net sales will range from flat to an increase of up to 3% compared to the same period of the previous year.
The company also projects that adjusted operating income will constitute about 1% to 4% of net sales, and adjusted EBITDA is expected to represent between 2% and 5% of net sales.
Vince Holding CEO Brendan Hoffman stated: “We are very proud of our second quarter performance which reflects disciplined execution and strong customer reception to our product offerings especially as we elongated our full-price selling season.
“As we remain mindful of the dynamic macro environment, our ability to navigate today’s challenges while preserving product quality and customer loyalty remains our utmost priority. Given the strength of our underlying trends, we are pleased to be in a position to begin to reinvest in the business as we remain focused on the growth opportunities ahead for the Vince brand as well as the Vince Holding Corp platform.”
