Vince Q1 2025: Sales decline, focus on supply chain diversification

American luxury apparel retailer Vince Holding's results for the first quarter ended May 3, 2025, highlighted the company's swift actions in response to a challenging and uncertain economic landscape.

For the first quarter of fiscal 2025, total company net sales decreased by 2.1 percent to 57.9 million dollars. This decline was primarily attributed to store closures and remodels within the direct-to-consumer retail segment. Despite the top-line dip, the wholesale segment demonstrated slight growth, with sales increasing by 0.1 percent to 30.3 million dollars. Conversely, direct-to-consumer segment sales decreased by 4.4 percent to 27.6 million dollars.

Brendan Hoffman, Chief Executive Officer of Vince, acknowledged the current climate, stating, "I continue to be encouraged by the strong execution and commitment to excellence I see across our organization, and while we are navigating a challenging environment marked by uncertainty, our first quarter performance was relatively in line with our expectations."

"As an organization, we quickly pivoted all efforts in the latter portion of the quarter to develop and put into action mitigation plans in light of the evolving tariff policies. In short order we have diversified our supply chain, negotiated with vendors, and leveraged other opportunities to mitigate near-term costs," Hoffman added.

Gross profit for the quarter stood at 29.2 million dollars, or 50.3 percent of net sales, a slight decrease versus 50.6 percent of net sales, in the first quarter of fiscal 2024.

Net loss for the quarter was 4.8 million dollars, or 37 cents per share, compared to a net income of 4.4 million dollars, or 35 cents per share, in the first quarter of the previous year. Adjusted net loss was 3.3 million dollars, or 26 cents per share, while Adjusted EBITDA was negative 3 million dollars compared to negative 1.5 million dollars in the same period last year.

Vince ended the quarter with 58 company-operated stores, a net decrease of four stores since the first quarter of fiscal 2024, reflecting ongoing optimization of its retail footprint.

For the second quarter of fiscal 2025, Vince expects net sales to be approximately flat to down 3 percent compared to the prior year period. Operating income as a percentage of net sales is projected to be approximately negative 1 percent to 1 percent, and Adjusted EBITDA as a percentage of net sales is anticipated to be approximately 1 percent to 4 percent. Due to the continuing uncertainty surrounding potential impacts and duration of current tariff policy, the company has elected not to provide full-year fiscal 2025 guidance.

The company also highlighted its ongoing strategic partnership with Authentic Brands Group, initiated on May 25, 2023. This partnership includes an exclusive, long-term license agreement for Vince's intellectual property, reinforcing the brand's stability and operational consistency across its wholesale, retail, and e-commerce channels.