Vince surges back into sales growth, slashes loss
New York-based fashion group Vince Holding Corp. announced on Thursday that it achieved net sales of $57.5 million in the first quarter, up 47.5% from $57.5 million in the prior-year period, progress which allowed the company to significantly reduce its net loss.
For the first quarter ended May 1, 2021, the group’s namesake Vince brand reported net sales of $50.7 million, an increase of 76.3% from the same period in the previous year. Revenue in the brand’s wholesale segment increased 150.6% year over year to $26.8 million, while sales in its direct-to-consumer segment rose 32.3% to $23.9 million.
The brand’s income from operations totaled $7.2 million, compared to a loss of $17.5 million in the prior-year period.
The group’s Rebecca Taylor and Parker business fared less well in the quarter, posting a 33.6% year-over-year decline in its net sales, which totaled $6.8 million. According to the company, it has paused the development of new product for Parker, a fact which contributed to around two-thirds of the segment’s overall revenue decline.
Loss from operations in the segment came to $3.3 million, compared to a loss of $6.1 million in the same period last year.
Overall, the Vince group’s quarterly net loss was $11.6 million, or $0.98 per share, compared to a loss of $48.2 million, or $4.12 per share, in the first quarter of last year.
“We are pleased with the pace of recovery in our business as we begin to emerge from the pandemic with significant sequential improvement in our financial performance,” commented Vince Holding Corp. CEO Jack Schwefel in a release. “Strong consumer demand for the Vince brand’s effortless sophisticated luxury is reflected in both our retail and wholesale sell-through rates.”
The company has not provided financial guidance for the second quarter or the full fiscal year 2021, but Schwefel did highlight the positive response to the relaunch of Rebecca Taylor, saying that he is “excited about the longer-term potential for this brand.”
Having opened three new locations since the first quarter of last year, Vince Holding Corp. currently operates 72 Vince and Rebecca Taylor stores.
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