Vince Reports Q4 FY2024 Revenue and Profit Gains, With Challenges in DTC Channel

Vince

On May 2, Vince Holding Corp., the U.S.-based apparel company behind the luxury brand Vince, released its financial results for the fourth quarter and full fiscal year 2024. While strong performance in the wholesale channel drove overall growth and gross margin expansion, the direct-to-consumer (DTC) business continued to face headwinds.

Wholesale Drives Growth; Gross Margin Improves by 470 Basis Points

For the fourth quarter ended February 1, 2025, Vince posted net sales of $80 million, up 6.2% year-over-year. Excluding the extra 53rd week in the prior year’s Q4, the adjusted sales increase was approximately 9%. The wholesale segment was the key driver, growing 26.7% to $39.1 million, while DTC sales fell 8.1% to $40.8 million, reflecting weaker performance at physical retail stores.

Gross profit came in at $40.1 million, with a gross margin of 50.1%, up from 45.4% in the same period last year—a 470 basis point improvement. The gains were largely attributed to reduced promotional activity and discounting in the DTC segment, alongside lower product and freight costs.

Return to Profitability on an Adjusted Basis; Transformation Efforts Underway

Despite reporting an operating loss of $29.7 million—largely due to a $32 million goodwill impairment charge—Vince achieved adjusted operating income of $2.5 million. The company posted a net loss of $28.3 million (or $2.24 per share), but adjusted net income reached $800,000 (or $0.06 per share), marking a return to profitability on an adjusted basis.

The company is undergoing a strategic rebuilding phase under CEO Brendan Hoffman, who returned to the role in 2023. Hoffman commented: “The stronger than expected end to the year is also a testament to the team, the quality product offerings that they have delivered that have continued to resonate with customers, as well as improvements in operational efficiencies from our transformation initiatives.”

In October 2023, Vince launched a cost transformation program aimed at improving profitability. The initiative delivered over $10 million in cost savings during FY2024.

Modest Full-Year Gains; DTC Weakness Offset by Wholesale Strength

For the full fiscal year ended February 1, 2025, Vince reported net sales of $293.5 million, up 0.2% from the previous year. While the wholesale channel continued to perform strongly, ongoing softness in the DTC business limited overall growth.

Gross profit for the year reached $145.2 million, with a gross margin of 49.5%—a notable improvement from 45.5% in FY2023. Vince recorded a net loss of $19 million (or $1.51 per share), while adjusted net income stood at $2.4 million (or $0.19 per share).

Tariff Policy Uncertainty Spurs Supply Chain Reassessment

Looking ahead, Vince is actively working to mitigate potential risks posed by evolving U.S. tariff policies. The company is reducing its manufacturing reliance on China, aiming to shift about one-third of its Fall 2025 product output to other parts of Asia. SKU optimization and supply chain diversification are part of this strategy.

In 2023, Vince signed a long-term exclusive licensing agreement with Authentic Brands Group, transferring the brand’s intellectual property in exchange for a 10-year renewable license. Vince continues to design, produce, and sell its products while paying royalties to Authentic under this licensing framework.

Cautious Outlook for Q1 FY2025

For the first quarter of fiscal 2025 (February to April 2025), CFO Yuji Okumura stated that changes in wholesale order timing, ongoing store closures and relocations, and reduced promotional activity are expected to lead to a 5% year-over-year decline in sales and a 500-basis-point drop in operating margin.

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