Vince Holdings, the fashion company that recently sold a majority stake to Authentic Brands Group, has reported a decline in sales for the third quarter. Sales decreased by 14.7% to $84.1 million, primarily due to the wind down of the Rebecca Taylor business, resulting in a complete halt in sales for the Rebecca Taylor and Parker segments. However, there was a slight decrease in Vince brand sales, which helped offset some of the losses.
The decline in sales affected both wholesale and direct-to-consumer channels, with wholesale sales decreasing by 9.4% to $49.8 million and direct-to-consumer sales decreasing by 1.2% to $34.2 million, compared to the same period last year.
Despite the decrease in sales, Vince Holdings managed to turn a profit during the three months ending October 28. The company reported a net income of $1 million or $0.08 per diluted share, compared to a net loss of $5.2 million or $0.43 per share in the same period last year.
CEO Jack Schwefel expressed satisfaction with the company’s performance in the third quarter, noting the sequential improvement compared to the prior quarter. He also highlighted their ongoing transformation program, which aims to achieve significant cost savings over the next three years. These savings will help offset the changes to the company’s cost structure resulting from the partnership with Authentic Brands Group. Despite the challenges, Vince Holdings remains optimistic about the future, focusing on improving profitability and positioning the company for long-term success.
In April, Authentic Brands acquired the intellectual property of Vince, establishing a subsidiary called ABG Vince. As part of the deal, Authentic became the licensing partner for the brand’s core categories and took over the management of its retail stores, wholesale accounts, and e-commerce operations. The agreement has a ten-year term with options for renewal.
In conclusion, Vince Holdings is currently undergoing a transformation phase following the majority stake sale to Authentic Brands Group. Despite the decline in sales, the company is hopeful about the future, implementing cost-saving strategies and aiming to improve profitability. With Authentic Brands as its partner, Vince Holdings aims to position itself for long-term success in the fashion industry.
Useful links:
– Vince Official Website
– Authentic Brands Group Official Website
