The US clothing retailer Vince Holding Corp. was able to increase its sales in the third quarter of the 2025/26 financial year. However, the profit fell short of the previous year’s level. This emerges from an interim report that the company published on Tuesday.
In the three months to November 1, sales were $85.1 million (€78.3 million), up 6.2 percent from the same period last year. The increase was based on sales increases of 6.7 percent in the wholesale segment and 5.5 percent in the company’s own retail sector.
CEO Brendan Hoffman attributed the progress in its own retail to strategic improvements such as store renovations, updating the e-commerce website, increased marketing and the introduction of drop-shipping options.
“We are very proud of our performance in the third quarter. We achieved healthy sales growth across all channels and exceeded expectations in both revenue and earnings,” he said in a statement. Hoffman also emphasized that the momentum continued in the fourth quarter with a record sales weekend at the start of the Christmas business.
However, the gross margin fell slightly to 49.2 percent in the most recent quarter. According to the company, this was mainly due to the negative impact of higher tariffs and increased freight costs. These effects were at least partially offset by lower product costs, higher prices and lower discounts.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) therefore fell from $7.4 to $6.5 million. Net profit shrank by 37 percent to $2.7 million (2.3 million euros) due to higher tax burdens.
The company now expects sales growth of around two to three percent for the entire financial year. The EBITDA margin adjusted for special effects is expected to be between four and five percent. This forecast already takes into account expected additional customs costs of four to five million US dollars in the final quarter.
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