Vince Holding Corp, a luxury apparel and accessories company in the US, saw a 7.6% decline in total net sales to $59.2 million in Q1 FY24, down from $64.1 million in Q1 FY23. However, gross profit slightly increased to $29.9 million, representing 50.6% of net sales in Q1 FY24 compared to $29.6 million, or 46.2% of net sales in Q1 FY23.
In the most recent quarter, Vince reported a decrease in selling, general, and administrative expenses as a percentage of sales compared to the same period last year. The company also saw a significant improvement in income from operations, resulting in a positive net income of $4.4 million. Despite a net decrease in the number of company-operated stores, Vince’s financial performance showed positive growth in Q1 FY23.
The wholesale segment saw a 6.8% decrease in sales to $30.3 million, while the direct-to-consumer segment experienced an 8.2% decline in sales to $28.9 million compared to the first quarter of fiscal 2023. Income from operations, excluding unallocated corporate expenses, was $10.1 million. The company focused on reducing promotional activity in the direct-to-consumer channel and off-price business in the wholesale channel, resulting in improved full-price performance and strong gross margin expansion. Despite negative impacts on topline performance, these actions were successful in driving profitability. David Stefko, interim CEO of Vince Holding, acknowledged the strategic focus on driving improved performance.
