Vince swings to profit in 2023

Vince Holdings announced on Tuesday net sales decreased 17.5% to $75.3 million for the fourth quarter, thanks to the previously announced winding down of its Rebecca Taylor business.

The U.S. luxury brand said the quarterly sales decline was driven by a 100% decrease in Rebecca Taylor and Parker segment sales, and to a lesser extent, a 6.3% decrease in its Vince brand.

For the year ending February 3, total company net sales decreased 18.1% to $292.9 million, again adversely affected by Rebecca Taylor’s closure, partially offset by a 8.3% decline in Vince sales.

Despite the plunging sales, the New York-based company swung to a net profit of $25.4 million or $2.04 per diluted share for the year, compared to a net loss of $38.3 million or $3.14 per share in the same period last year. 

“Fiscal 2023 was a transformative year for Vince as we completed the wind down of the Rebecca Taylor business, entered into a strategic partnership with Authentic Brands Group, successfully refinanced our credit facilities, and launched a cost savings plan to improve our gross margin profile and align our expense structure with our go-forward operating model,” said David Stefko, interim chief executive officer of Vince Holdings.

“In addition, we enhanced our focus on driving improved profitability through disciplined inventory management, lower promotional activity and a pullback in the off-price channel. While these actions impact topline results, as reflected in our fourth quarter performance and expectations for fiscal 2024, they help to support strong margin expansion, and we believe they are the right steps to take to further strengthen our foundation and enable long-term profitable growth.”

In late March, Vince announced that Jack Schwefel has resigned from the role of chief executive officer, just two years after the executive took on the top position.