US' Vince's FY24 sales touches $293.5 mn, gross margin improves
American retailer of luxury apparel and accessories Vince Holding Corp has generated net sales of $293.5 million in full fiscal 2024 (FY24) ended February 1, 2025, an increase of 0.2 per cent year-over-year (YoY) driven by strength in its wholesale channel which offset lower performance in its direct-to-consumer (DTC) channel.
The gross profit of the company reached $145.2 million, or 49.5 per cent of net sales. The increase in gross margin rate was driven by approximately 330 basis points (bps) related to lower promotional activity and discounting and approximately 320 bps due primarily to lower product costing and freight costs, Vince said in a press release.
Vince Holding Corp has reported sales of $293.5 million in FY24 net, up 0.2 per cent YoY, driven by wholesale gains offsetting lower DTC performance. Gross profit rose to $145.2 million with margin gains from reduced promotions and costs. Q4 sales rose 6.2 per cent to $80 million. Despite FY24 strength, the company expects a 5 per cent sales decline in Q1 FY25 amid tariff and retail challenges.
The adjusted net income for FY24 was $2.4 million or $0.19 per share.
The company in the fourth quarter (Q4) recorded net sales of $80.0 million, an increase of 6.2 per cent YoY. The increase was driven by strength in its wholesale channel, which included a slight benefit from earlier shipments, and offset by the softness in the Vince DTC channel primarily related to retail stores.
The gross profit in Q4 was $40.1 million, or 50.1 per cent of net sales. The increase in gross margin rate was primarily driven by approximately 320 bps related to lower promotional activity in the DTC segment and lower discounting and approximately 210 bps related to lower product costing and freight costs. These factors were partially offset by approximately 120 bps attributable to channel mix.
The company ended the quarter with 57 company-operated Vince stores, a net decrease of 6 stores since Q4 FY23.
Brendan Hoffman, chief executive officer (CEO) of Vince said, 'Since returning to the CEO role earlier this year, my initial observations of the company have been reinforced. I've been impressed by the resilience and depth of our leadership team and by the progress that has been made in strengthening the foundation and overall business model.'
'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. As we look ahead, we will be shifting the focus and goals of our transformation plan to align with today's environment and needs as we work to mitigate the impact of the evolving tariff policies,' added Hoffman. 'Despite the increased uncertainty with respect to the macro-environment, I remain confident in the business' long-term trajectory and our team's ability to adjust and react accordingly to deliver customers the product and experience they expect from us.'
For the first quarter (Q1) of fiscal 2025 (FY25), Vince Holding is expecting net sales to decline approximately 5 per cent and adjusted operating margin to decline approximately 500 bps compared to the prior year.
Given the increased uncertainty related to the potential impact and duration of current tariff policy, the company has not provided guidance for the full FY25, added the release.
Yuji Okumura, chief financial officer of Vince , commented, 'As a result of shift in timing of wholesale orders into the fourth quarter and the ongoing impact from planned store activity in our retail channel, including multiple closures, remodels and relocations, as well as ongoing efforts to reduce our promotional activity, we expect our first quarter fiscal 2025 sales to decline compared to the prior year. We continue to be pleased with the traction we have seen in product margin performance, however our adjusted operating margin expectations are impacted by the decline in sales, increased marketing spends incurred earlier in the quarter, and other expenses primarily related to the timing of store relocations and remodels.'
Fibre2Fashion News Desk (SG)
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