Vince Holding Corp, a leading global luxury apparel and accessories firm based in the US, has reported a decline in net sales by 18.1 per cent to $292.9 million in fiscal 2023 (FY23), compared to $357.4 million in FY22. The sharp decrease was primarily due to a 99.5 per cent drop in sales from the Rebecca Taylor and Parker segment, following the wind-down of the Rebecca Taylor business. Additionally, sales of the Vince brand decreased by 8.3 per cent.

Despite the downturn in sales, gross profit improved to $133.3 million, or 45.5 per cent of net sales, up from $138.0 million, or 38.6 per cent of net sales in fiscal 2022. Selling, general, and administrative expenses also decreased to $134.5 million, or 45.9 per cent of sales, down from $161.4 million, or 45.2 per cent of sales, in the previous year, the company said in a press release.

Income from operations turned around dramatically, reaching $31.6 million compared to a $25.4 million loss in fiscal 2022. However, adjusted income from operations was reported at $4.0 million for fiscal 2023. Net income for the year was $25.4 million, or $2.04 per diluted share, reversing from a net loss of $38.3 million, or $3.14 per share, in fiscal 2022. The adjusted net loss for fiscal 2023 was $7.7 million, or $0.62 per share.

For the fourth quarter of fiscal 2023 (Q4 FY23), net sales fell by 17.5 per cent to $75.3 million from $91.3 million in the same quarter of the previous year. The gross profit was $34.2 million, or 45.4 per cent of net sales, compared to $36.2 million, or 39.6 per cent of net sales in Q4 FY22. Selling, general, and administrative expenses were reduced to $35.8 million, or 47.6 per cent of sales. The quarterly loss from operations was $1.7 million, an improvement from a $5.5 million loss in Q4 FY22. The net loss narrowed to $4.7 million, or $0.37 per share, compared to a loss of $11.0 million, or $0.89 per share in the prior year quarter.

By the end of Q4 FY23, Vince Holding Corp operated 63 company-owned Vince stores, reflecting a net decrease of four stores compared to the end of the fourth quarter of fiscal 2022.

David Stefko, interim chief executive officer of Vince Holding, said: "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.

“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."

Fibre2Fashion News Desk (DP)

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