Updated 4:16 p.m. ET on June 17
Vince, the contemporary brand, ended its first quarter with a loss and slight dip in sales but indicated that the results fell in line with expectations.
The net loss for the quarter ended May 3 was $4.8 million, or 37 cents a share, compared to net income of $4.4 million, or 35 cents a share, in the same period last year. Excluding the gain on the sale of a subsidiary, the adjusted net loss was $3.3 million, or 26 cents a share, in the first quarter of fiscal 2024. During fiscal 2024, the company completed the wind down and sale of the Rebecca Taylor brand, and determined that its Parker brand would not be part of the company’s future.
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The loss from operations was $4.4 million compared to income from operations of $5.6 million in the same period last year. Excluding the gain on the sale of Rebecca Taylor in the first quarter of fiscal 2024, the adjusted loss from operations in the first quarter of fiscal 2024 was $2 million.
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Total company net sales decreased 2.1 percent to $57.9 million compared to $59.2 million in the first quarter of 2024. The year-over-year decline was driven by store closures and remodels which negatively impacted the retail store channel in the direct-to-consumer segment, the company indicated.
“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,” Brendan Hoffman, chief executive officer, said in a statement Tuesday morning. “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. As we look ahead, we will continue these efforts along with providing customers a high-quality product offering and an engaging experience across our channels.”
For the second quarter of fiscal 2025 the company expects net sales to be about flat to down 3 percent compared to the prior year period. Operating income as a percentage of net sales is projected to be about down 1 percent to up 1 percent. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, as a percentage of net sales are seen about up 1 to 4 percent. Due to the uncertainty related to the potential impact and duration of current tariff policy, Vince did not provide guidance for the full year.
Vince shares fell 11.9 percent to $1.48 on Tuesday.
Vince ended the quarter with 58 company-operated stores, a net decrease of four stores since the first quarter of fiscal 2024.
Wholesale sales increased 0.1 percent to $30.3 million compared to the first quarter of fiscal 2024. Direct-to-consumer segment sales decreased 4.4 percent to $27.6 million compared to the first quarter of fiscal 2024.
Income from operations relating to reportable segments, Vince Wholesale and Vince Direct-to-consumer, was $8.6 million compared to income from operations of $10.1 million in the same period last year.
Last January, P180, a venture formed by Hoffman, acquired a majority stake in Vince from Sun Capital Partners, putting Hoffman, the former CEO of Wolverine Worldwide, Vince, Lord & Taylor and neimanmarcus.com, back at the helm of Vince. Hoffman partnered with Christine Hunsicker, the CEO of CasStle, to cofound P180 and buy control of Vince. But just two months later, Hunsicker was out as CaaStle’s CEO, accused of doctoring financial statements. Now P180 is suing Hunsicker. CaaStle enables retailers and brands to run rental businesses by providing all the logistics functions and data and analytics.