The US textile company Vince Holding Corp. had to accept significant losses in sales in the third quarter of the 2023/24 financial year, but was able to return to profitability. This emerges from an interim report that the company presented on Wednesday.
According to this, the group achieved sales of 84.1 million US dollars (77.9 million euros) in the three months before October 28th, which corresponded to a decrease of 14.7 percent compared to the same quarter of the previous year. The company justified this with the discontinuation of the Rebecca Taylor division and lower sales of the Vince brand (-6.2 percent).
Gross margin increased from 30.2 to 44.2 percent, primarily due to lower freight costs, lower discounts and the separation of the low-margin Rebecca Taylor business. However, the result was burdened by the payment of license fees for the Vince label as a result of the sale of the trademark rights to the Authentic Brands Group in the spring. This cost factor should be compensated for in the future through targeted savings measures.
The extensive changes to the business model helped the group report an operating profit of $2.8 million, after suffering an operating loss of $9.4 million in the same period last year.
The bottom line was a net profit of almost one million US dollars (0.9 million euros). The company closed the third quarter of the previous year with a corresponding loss of $5.2 million.