Vince Holding Corp. Reports First Quarter 2026 Results

Net Sales Increased 10.5% to $64.0 Million vs. 1Q25 Raises Full Year Fiscal 2026 GuidanceNEW YORK--(BUSINESS WIRE)--Vince Holding Corp. (Nasdaq: VNCE) ("VNCE" or the "Company"), a global retail platform, today reported its financial results for the first quarter ended May 2, 2026. Brendan Hoffman, Chief Executive Officer of VNCE said, “We delivered strong first quarter results that demonstrate the powerful momentum we’ve built is not only sustained but accelerating. Net sales grew 10.5%, with direct-to-consumer up 15.6% and wholesale increasing 5.9% demonstrating strength across our entire business. Our strategic investments in customer experience are paying off, fueling double-digit growth in both new and reactivated customers and supporting healthy full-price selling." Mr. Hoffman continued, "We’re executing with discipline and precision across our business. The strength we’ve established has carried into the second quarter, reinforcing my confidence in our trajectory. With our strategic foundation firmly in place and a talented team driving product and execution, we are raising our full year guidance and remain focused on driving sustained profitable growth and creating long-term shareholder value." In this press release, the Company is presenting its financial results in conformity with U.S. generally accepted accounting principles ("GAAP") as well as on an "adjusted" basis. Adjusted results presented in this press release are non-GAAP financial measures. See "Non-GAAP Financial Measures" below for more information about the Company's use of non-GAAP financial measures. For the first quarter ended May 2, 2026: Total Company net sales increased 10.5% to $64.0 million compared to $57.9 million in the first quarter of fiscal 2025. The year-over-year increase was driven by a 15.6% increase in the direct-to-consumer segment and a 5.9% increase in the wholesale segment. Gross profit was $32.4 million, or 50.6% of net sales, compared to gross profit of $29.2 million, or 50.3% of net sales, in the first quarter of fiscal 2025. The increase in gross margin rate was primarily driven by approximately 130 basis points due to the favorable impact from higher pricing and 100 basis points due to the favorable impact of lower discounting, largely offset by the unfavorable impact of higher tariffs. Selling, general, and administrative expenses were $35.0 million, or 54.7% of sales, compared to $33.6 million, or 58.0% of sales, in the first quarter of fiscal 2025. The increase in SG&A dollars was primarily driven by higher benefit costs as well as marketing and advertising costs. Loss from operations was $2.6 million compared to loss from operations of $4.4 million in the same period last year. Income tax benefit was $0.4 million compared to an income tax expense of $0 in the same period last year. The benefit is due to the impact of applying the Company's estimated annual effective tax rate to the year-to-date ordinary pre-tax loss. Net loss was $2.1 million or $(0.16) per share compared to net loss of $4.8 million or $(0.37) per share in the same period last year. Adjusted EBITDA* was $(1.1) million compared to $(3.0) million in the same period last year. The Company ended the quarter with 54 company-operated Vince stores, a net decrease of 4 stores since the first quarter of fiscal 2025. First Quarter Review Net sales increased 10.5% to $64.0 million as compared to the first quarter of fiscal 2025. Wholesale segment sales increased 5.9% to $32.1 million compared to the first quarter of fiscal 2025. Direct-to-consumer segment sales increased 15.6% to $32.0 million compared to the first quarter of fiscal 2025. Income from operations excluding unallocated corporate expenses was $12.0 million compared to income from operations of $8.6 million in the same period last year. Net Sales and Operating Results by Segment: Three Months Ended May 2, May 3, (in thousands) 2026 2025 Net Sales: Vince Wholesale $ 32,066 $ 30,290 Vince Direct-to-consumer 31,969 27,643 Total net sales $ 64,035 $ 57,933 Income (loss) from operations: Vince Wholesale $ 10,134 $ 9,397 Vince Direct-to-consumer 1,847 (800 ) Total segment income from operations 11,981 8,597 Unallocated corporate (1) (14,628 ) (13,035 ) Total loss from operations $ (2,647 ) $ (4,438 ) (1) Unallocated corporate expenses are related to the Vince brand and are comprised of selling, general and administrative expenses attributable to corporate and administrative activities (such as marketing, design, finance, information technology, legal and human resource departments), and other charges that are not directly attributable to the Company's Vince Wholesale and Vince Direct-to-consumer reportable segments. Balance Sheet At the end of the first quarter of fiscal 2026, total borrowings under the Company's debt agreements totaled $29.1 million and the Company had $31.2 million of excess availability under its revolving credit facility. Net inventory at the end of the first quarter of fiscal 2026 was $70.8 million compared to $62.3 million at the end of the first quarter of fiscal 2025. The year-over-year increase in inventory includes approximately $4.5 million of higher inventory carrying value due to tariffs. During the quarter ended May 2, 2026, the Company did not make any offerings or sales of shares of common stock under the Virtu At-the-Market Offering. At May 2, 2026, $0.9 million was available under the Virtu At-the-Market Offering. Outlook For the second quarter of fiscal 2026 the Company expects the following: Net sales to increase approximately 10% to 12% compared to the prior year period. Adjusted operating income as a percentage of net sales to be approximately 6.5% to 7.0%. Adjusted EBITDA as a percentage of net sales to be approximately 8.0% to 8.5%. For fiscal 2026 the Company expects the following: Net sales to increase approximately 7% to 8% compared to the prior year. Adjusted operating income as a percentage of net sales to be approximately 4% to 4.5%. Adjusted EBITDA as a percentage of net sales to be approximately 5.5% to 6.0%. Following the Supreme Court’s decision striking down certain tariffs imposed under the International Emergency Economic Powers Act, (“IEEPA”), the Company’s outlook assumes a 10 percent rate for applicable inventory receipts under Section 122 of the Trade Act of 1974. The Company’s outlook does not consider potential tariff refunds resulting from the Supreme Court’s decision on the IEEPA tariffs. *Non-GAAP Financial Measures In addition to reporting financial results in accordance with GAAP, the Company has provided, with respect to the financial results relating to the three months ended May 2, 2026 and May 3, 2025, adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization, share-based compensation, and capitalized cloud computing amortization. The Company believes that the presentation of these non-GAAP measures facilitates an understanding of the Company's continuing operations without the impact associated with the aforementioned items. While these types of events can and do recur periodically, they are excluded from the indicated financial information due to their impact on the comparability of earnings across periods. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP results has been provided in Exhibit 3 to this press release. Conference CallRead the full story here

Vince Holding Corp. Reports First Quarter 2026 Results

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