Vince Cuts Losses in Q4 and Year – WWD

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Vince Holding Corp., the group of contemporary fashion brands, cut its loss in the fourth quarter to $2.7 million, or 23 cents a share, compared to a net loss of $7.4 million, or 62 cents a share, in the same period last year.

Net sales in the period ended Jan. 29 increased 32.4 percent to $99 million as compared to $74.8 million in the same period last year, reflecting a 25 percent increase in Vince brand sales and a 121.3 percent increase in Rebecca Taylor and Parker.

Income from operations was $1.8 million compared to a loss from operations of $3.9 million in the same period last year.

“Although there are currently many headwinds beyond our control, we are very encouraged with the ongoing strength in our Vince brand,” Jack Schwefel, chief executive officer, commented on Friday. “We have a solid foundation with strong brand equity and deep customer connections, which we will continue to leverage to further expand awareness and drive long-term growth.

“As we head into 2022, while we remain focused on executing our strategies including the expansion of our omni-channel capabilities, digital transformation and growing our men’s and international businesses, we will continue to employ measures to mitigate the impact of supply chain challenges and cost inflation by pulling forward inventory and instituting additional prices increases. Longer term, we continue to see ample opportunity to grow our brands and look forward to driving market share gains as we capitalize on the increasing white space in the contemporary luxury category.”

By brand, Vince reported net sales increased 25.6 percent to $87.3 million as compared to the fourth quarter of fiscal 2020. Income from operations excluding unallocated corporate expenses was $15.9 million compared to income of $12 million in the same period last year.

The Rebecca Taylor and Parker brands combined reported net sales increased 121.3 percent to $11.7 million as compared to the fourth quarter of fiscal 2020. The loss from operations was $1.3 million compared to a loss from operations of $5 million in the same period last year.

For the fiscal year, the company’s net loss was $12.7 million, or $1.07 a share, compared to a net loss of $65.6 million, or $5.58 a share. The loss includes $1.5 million of expense related to the termination of the 2018 term loan. The adjusted net loss was $41.1 million.

Operating income was $0.5 million compared to an operating loss of $61.1 million in the prior year.

Total company net sales increased 46.8 percent to $322.7 million compared to $219.9 million in fiscal year 2020.

After being closed for almost two years during the pandemic, Vince on 49th Street by Fifth Avenue in Manhattan reopened last Saturday with a “refreshed” look and a more comprehensive collection, with pumped up space for footwear and extended sizes.

Also, Vince plans to open a 1,875-square-foot unit in the Boston Seaport in about two months and its first store in China, in Shanghai, this fall, despite the city being on lockdown due to the COVID-19 health crisis there.

The company ended the fourth quarter with 86 company-operated Vince and Rebecca Taylor stores, a net increase of 15 stores since the fourth quarter of fiscal 2020.

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