Vince Holding, a contemporary retailer, has reported total net sales of $74.18m in the second quarter (Q2) of fiscal 2024 (FY24), up 6.8% compared to $69.4m in Q2 FY23.
Sales in the retailer’s wholesale segment increased by 29.6%, which more than offset the 18.1% fall in direct-to-consumer segment sales in the quarter.
Vince Holding saw its net income drop to $0.56m in Q2 FY24, from the $29.51m recorded in the same quarter of the previous year.
Its earnings per diluted share for the quarter were $0.05, compared with $2.36 per share in Q2 FY23.
The retailer’s income from operations was $1.13m in Q2 FY24, against $32.85m in the same quarter of the previous fiscal year.
During the quarter ending 3 August 2024, the retailer posted a gross profit of $35.13m, up from $32.34m in Q2 FY23.
The company’s selling, general and administrative expenses were $34m in Q2 FY24, representing 45.8% of total sales, compared to $31.5m, or 45.4% of sales in Q2 FY23.
Vince Holding interim chief executive officer David Stefko said: "We are pleased with our second quarter results driven by strong performance in our wholesale channel, ongoing focus on full price selling and disciplined expense management of our core operating cost structure which helped to partially offset the expected headwinds from ongoing royalty expenses as well as the re-establishment of our incentive compensation programme.
“The strength in our wholesale channel was driven in part by our ability to fulfil demand earlier than expected and helped to offset softer performance in our direct-to-consumer channel which was impacted by store closures and our strategic decision to continue to pull back on promotional activity.”
In the six months ended 3 August 2024, the company’s net sales were $133.34m, gross profit was $65.04m and net income was $4.94m.
Looking ahead, the retailer expects total company net sales for the full year to drop into the low-single-digit range compared to $292.9m in FY23.
In the third quarter of fiscal 2024, Vince Holding anticipates net sales to be flat to down low single digits compared to $84.1m recorded in Q3 FY23.
The retailer has 61 company-operated Vince stores as of the end of the second quarter, representing a net decrease of five stores since Q2 FY23.
