Vince Holding posts Q2 net sales growth of 6.8 percent

Vince Holding’s net sales increased 6.8 percent to 74.2 million dollars driven by a 7 percent increase in Vince brand sales due to a 29.6 percent increase in the wholesale channel.

The company said in a release that the growth in the wholesale channel more than offset the 18.1 percent decline in the direct-to-consumer channel which continued to be impacted by the reduction in promotional activity as well as store closures.

Commenting on the trading update, David Stefko, interim chief executive officer of VNCE said: "We are pleased with our second quarter results driven by strong performance in our wholesale channel, ongoing focus on full price selling and disciplined expense management of our core operating cost structure which helped to partially offset the expected headwinds from ongoing royalty expenses as well as the re-establishment of our incentive compensation program.”

The company’s net income decreased to 0.6 million dollars or 5 cents per diluted share and adjusted net loss was 0.5 million dollars or 4 cents loss per share. Vince Holding ended the quarter with 61 company-operated Vince stores, a decrease of five stores versus the previous year

For the third quarter of fiscal 2024 the company expects net sales to be flat to down low single digits, operating margin to increase 350 basis points to 450 basis points. For the full year, the company now expects net sales to decrease in the low-single-digit range and operating margin to increase 25 basis points to 50 basis points.