Vince Holding Corp. Reports Slight Increase in Net Sales but Significant Loss for Fiscal Year 2024

Vince Holding Corp. reported a slight increase in net sales for fiscal year 2024, totaling $293.5 million, up 0.2% from $292.9 million in fiscal year 2023. The company's gross profit rose by 8.9% to $145.2 million, resulting in a gross margin of 49.5%, compared to 45.5% in the previous year. This improvement was attributed to lower promotional activity and reduced product and freight costs, although it was partially offset by increased royalty expenses related to the company's licensing agreement with Authentic Brands Group (ABG). The company recorded a significant loss of $19 million for the year, a stark contrast to the net income of $25.4 million reported in the prior year, primarily due to a goodwill impairment charge of $32 million.

In terms of operational changes, Vince Holding completed the sale of its intellectual property assets related to the Vince brand to ABG on May 25, 2023, and subsequently entered into a licensing agreement that allows it to continue using the brand. The company also underwent a significant ownership change when P180 Vince Acquisition Co. acquired a majority stake in the company on January 22, 2025. This acquisition is expected to accelerate growth and profitability in the luxury apparel sector.

The company’s retail footprint has seen a reduction, with a total of 57 stores as of February 1, 2025, down from 63 the previous year. This includes 43 full-price and 14 outlet stores. The direct-to-consumer segment reported a decline in sales, dropping 10.5% to $128.1 million, which was attributed to decreased promotional activity and the closure of six net retail stores. Conversely, the Vince Wholesale segment experienced a 10.5% increase in sales, reaching $165.3 million, driven by higher full-price shipments.

Vince Holding's strategic focus remains on enhancing profitability through disciplined inventory management and optimizing its expense structure. The company is also navigating challenges posed by changing trade policies and tariffs, which have impacted its cost structure. Looking ahead, Vince Holding aims to leverage its transformation program to mitigate these impacts while continuing to expand its direct-to-consumer business and improve its overall market position. The company has expressed confidence in meeting its liquidity needs over the next twelve months, although it acknowledges the potential for significant fluctuations in its financial results due to macroeconomic factors.