Vince profits rally on D2C boost despite wholesale drop

Vince Holdings announced on Wednesday sales for the second quarter fell 1.3% to $73.2 million, hurt by declining wholesale revenues, as the U.S. fashion firm boosted profits during the quarter.

The New York-based company said the decline in the wholesale segment, which fell 5.1% to $44.8 million, followed a shift in timing of fall shipments, impacted by an “earlier uncertainty with respect to tariff policies and impact,” according to a press release.

Direct-to-consumer sales at the luxury fashion brand grew 5.5% to ​$28.5 million during the quarter ending Aug 2.

Despite the sales drop, net income grew to $12.1 million or $0.93 per diluted share, surging from net income of $0.6 million or $0.05 per diluted share in the same period last year. 

“We are very proud of our second quarter performance which reflects disciplined execution and strong customer reception to our product offerings especially as we elongated our full-price selling season,” 
said ​​Brendan Hoffman, chief executive officer of Vince.

“As we remain mindful of the dynamic macro environment, our ability to navigate today’s challenges while preserving product quality and customer loyalty remains our utmost priority. Given the strength of our underlying trends, we are pleased to be in a position to begin to reinvest in the business as we remain focused on the growth opportunities ahead for the Vince brand as well as the Vince Holding Corp. platform.”

Earlier this year, Vince opened its European flagship with a debut on Marylebone High Street in central London.