The US textile company Vince Holding Corp. made further progress on its reform path in the third quarter of the 2024/25 financial year. Although the company suffered a decline in sales, it was able to significantly increase its profits.
“Our transformation plan continues to deliver strong results,” emphasized interim CEO David Stefko in a statement published on Tuesday evening. The group sold the trademark rights of the fashion label Vince to the Authentic Brands Group last year and has since been operating the brand’s operational business as a licensing partner. The change in the business model gave rise to a comprehensive restructuring of the company.
Sales fell by almost five percent
In the three months to November 2nd, group sales amounted to 80.2 million US dollars (76.4 million euros). This corresponded to a decline of 4.7 percent compared to the same quarter of the previous year. In its own retail business, sales for the Vince brand fell by 8.3 percent to $31.4 million, while in the wholesale business they fell by 2.2 percent to $48.8 million.
However, the result went up. The main reason for this was that the gross margin increased from 44.2 to 50.0 percent. The significant improvement was justified by lower product and freight costs as well as the targeted limitation of price discounts.
At $5.8 million, operating profit was more than twice as high as in the same period last year, when it was $2.8 million. Net income jumped from $0.98 million to $4.3 million (4.1 million euros).