US’ Vince Holding Corp’s net sales soar 12.7% to $98.6 mn in Q3 FY22

The decrease in the gross margin rate was primarily driven by the wind down of the Rebecca Taylor business. The wind down of the Rebecca Taylor business negatively impacted third quarter 2022 gross margin rate by 800 basis points, the company said in a press release.

Leading American luxury apparel company Vince Holding Corp has reported a 12.7 per cent increase in net sales to $98.6 million in the third quarter of fiscal 2022, ended October 29. The company’s gross profit was $29.8 million, or 30.2 per cent of net sales, compared to gross profit of $42.1 million, or 48.2 per cent of net sales, in Q3 FY21.

In Q3 FY22, loss from operations was $9.4 million compared to income from operations of $3.1 million in the same period last year. Loss from operations for the third quarter 2022 includes $11.1 million of costs associated with the wind down of the Rebecca Taylor business.

Selling, general, and administrative expenses in Q3 FY22 were $39.2 million, or 39.8 per cent of sales, compared to $39 million, or 44.6 per cent of sales, in the third quarter of fiscal 2021.

Vince Holding Corp ended the quarter with 67 company-operated Vince stores and 18 company-operated Rebecca Taylor stores, a net increase of 2 stores since the third quarter of fiscal 2021.

In Q3 FY22, Vince brand’s net sales increased 14.4 per cent to $89.7 million as compared to the third quarter of fiscal 2021. Wholesale segment sales increased 29.1 per cent to $55 million compared to Q3 FY21. Direct-to-consumer segment sales decreased 3 per cent to $34.7 million compared to the corresponding period last year.

Parker brand’s net sales decreased 2.2 per cent to $8.9 million in Q3 FY22 as compared to Q3 FY21. Loss from operations was $13.2 million compared to a loss from operations of $3.1 million in the same period last year.

“Our third quarter performance reflects continued growth from our Vince brand as we saw nice reception across our men’s and women’s assortment particularly as we transitioned into the cooler fall season. In addition, during the quarter, we were very pleased to have celebrated our 20th anniversary with capsule collections that focused on our rich brand heritage that continues to support our growth especially as we navigate the ongoing challenging consumer environment,” said Jack Schwefel, chief executive officer.

Fibre2Fashion News Desk (DP)