US' Vince Holding Corp posts double digit net sales growth in FY22

In FY22, the company’s selling, general, and administrative expenses increased to $161.4 million or 45.2 per cent of sales compared to $146.1 million or 45.3 per cent of sales in the prior year. This resulted in a loss from operations of $25.4 million compared to operating income of $0.5 million in fiscal 2021. The company also reported a net loss of $38.3 million or $3.14 per share compared to a net loss of $12.7 million or $1.07 per share in the same period last year, Vince Holding Corp said in a press release.

Vince's net sales increased by 12.6 per cent to $319.1 million in FY22 compared to FY21. The wholesale segment sales increased by 14.6 per cent to $169.4 million compared to fiscal 2021, while direct-to-consumer segment sales increased by 10.4 per cent to $149.8 million. Income from operations excluding unallocated corporate expenses was $46 million compared to income of $56.7 million in the same period last year.

In contrast, Rebecca Taylor and Parker's net sales in FY22 decreased by 2.2 per cent to $38.3 million compared to fiscal 2021. The loss from operations was $21.3 million compared to a loss from operations of $9.2 million in the same period last year.

For the fourth quarter (Q4) of FY22, the company’s total net sales decreased by 7.8 per cent to $91.3 million compared to $99 million in the same period last year. Gross profit was $36.2 million or 39.6 per cent of net sales compared to gross profit of $43.6 million or 44 per cent of net sales in Q4 FY21. The company incurred a loss from operations of $5.5 million compared to income from operations of $1.8 million in the same period last year.

Vince's net sales for Q4 FY22 decreased by 8 per cent to $80.3 million compared to the same period last year. Wholesale segment sales decreased by 20.9 per cent to $34.2 million, while direct-to-consumer segment sales increased by 4.7 per cent to $46.1 million. Income from operations excluding unallocated corporate expenses was $9.4 million compared to income from operations of $15.9 million in Q4 FY21.

Rebecca Taylor and Parker's net sales for Q4 FY22 decreased by 6.4 per cent to $11 million compared to the same period last year. However, the loss from operations decreased to $1.1 million compared to a loss from operations of $1.3 million in the same period last year.

The company ended Q4 FY22 with 67 company-operated Vince stores, a net decrease of 1 store since the fourth quarter of fiscal 2021, the release added.

Jack Schwefel, chief executive officer of Vince Holding, said: “Fiscal 2022 was a challenging year, but I am very proud of the resiliency of our teams, and believe, through the actions we have taken, we are well positioned to drive improved results and long-term success.

“During the fourth quarter, we substantially completed the wind down of the Rebecca Taylor business and continued to take actions with respect to our inventory balance to end the year in a healthier position. As we look ahead, we will continue to operate with discipline while staying focused on our long-term strategic initiatives while leveraging our recent agreement with Authentic Brands Group.”

Fibre2Fashion News Desk (DP)