Vince Holding Corp has swung to a loss in the fourth quarter of the year as sales at the New York-based fashion group dropped 28.4 percent.
The group, which includes brands Vince, Rebecca Taylor, and Parker, reported sales of 74.8 million dollars in the three months to January 30 2021, compared to 104.4 million dollars a year earlier.
Those figures reflected a 20.4 percent drop in Vince brand sales to 69.5 million dollars and a 68.9 percent decrease in Rebecca Taylor and Parker sales to 5.3 million dollars.
The group reported a net loss of 5.7 million dollars for the quarter compared to a profit of 51.7 million dollars a year earlier.
Sequential improvement driven by wholesale
Despite the falling sales, the company pointed out it had made a sequential improvement on previous months. Chief financial officer Dave Stefko said in a release: “We saw sequential improvement in Vince during the fourth quarter led by our wholesale business.
“Within the wholesale channel, retail sales continue to improve as we believe we are taking share within the contemporary luxury category. At Rebecca Taylor, the decrease in sales reflects a resetting of the brand including an elimination of one of our seasonal collections.”
For the full year, group net sales decreased 41.4 percent to 219.9 million dollars, reflecting a 36 percent drop in Vince brand sales to 192.1 million dollars and a 62.9 percent drop in Rebecca Taylor and Parker sales to 27.8 million dollars.
Net loss for the year was 63.9 million dollars compared with profits of 0.4 million dollars a year earlier.
“As the world recovers from the Covid pandemic and life begins to normalize, we are excited about the future of our brands,” said group CEO Jack Schwefel.
He continued: “Vince is distinctly positioned as a brand that embodies effortless sophisticated style. We will continue to leverage Vince’s brand equity and deep consumer connections to expand awareness and drive growth with an increased focus on the direct-to-consumer channel.
“Rebecca Taylor also possesses a strong DNA and as we return to the brand’s heritage in a modernized way, we believe we can achieve a similar level of recognition that was recaptured by Vince.”