Vince swings to profit loss on sales decline
The New York-based company said sales for the quarter ending May 3 were hurt by declining retail store channel sales in the direct-to-consumer segment, as a result of store closures and renovations during the three months.
As a result, the fashion firm swung to an earnings loss of $4.8 million or a loss $0.37 per share in the quarter, compared to net income of $4.4 million or $0.35 per share in the same period last year.
"I continue to be encouraged by the strong execution and commitment to excellence I see across our organization, and while we are navigating a challenging environment marked by uncertainty, our first quarter performance was relatively in line with our expectations," said Brendan Hoffman, chief executive officer of Vince Holdings.
"As an organization, we quickly pivoted all efforts in the latter portion of the quarter to develop and put into action mitigation plans in light of the evolving tariff policies. In short order we have diversified our supply chain, negotiated with vendors, and leveraged other opportunities to mitigate near-term costs."
Given the uncertainty related the ongoing tariff launches in the U.S., the company said it is not providing guidance for the full-year 2025.
"As we look ahead, we will continue these efforts along with providing customers a high quality product offering and an engaging experience across our channels," added Hoffman.
At the end of the quarter, the firm counted 58 Vince stores, a decrease of 4 stores since the same period last year.
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