The US clothing retailer Vince Holding Corp. closed the 2025/26 financial year with an increase in sales. Despite significant challenges resulting from the restructuring efforts of the insolvent retail group Saks Global, the company is showing resilience. It is now focusing on international expansion with its own flagship stores and an improved retail model to drive future growth.
Strategic response to the Saks Global bankruptcy
During the earnings call, executives commented on the impact of the situation at Saks Global. This led to a loss in sales of around two million US dollars for Vince in the fourth quarter. It also necessitated impairments of six million US dollars, which had a negative impact on earnings.
CEO Brendan Hoffman said the Saks Global business recently accounted for less than seven percent of total sales. To mitigate wholesale risk, Vince is now strengthening relationships with other key partners. The presence at Bloomingdale’s recently led to strong results, and Vince also recently held successful events with Nordstrom in Dallas and Los Angeles.
International expansion and flagship ambitions
Following the success of its second London store in Marylebone, which exceeded internal expectations, the company is turning its attention to international cities for further growth. Paris has been identified as a primary destination for a flagship location within the next two years.
Hoffman emphasized that the success in Marylebone had raised the bar for international market entries. The company intends to focus on highly productive locations rather than quickly increasing the total number of stores. The existing branch network should also be optimized accordingly.
Annual sales increase by around two percent
In the past financial year, which ended on January 31, sales increased by 2.2 percent to 300.0 million US dollars (254.5 million euros). The growth engine was the company’s own retail sector, with an increase of 4.8 percent.
Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special items increased from $14.0 to $15.1 million. Net profit amounted to 6.4 million US dollars (5.4 million euros), after a loss of 19.0 million US dollars had to be reported in the previous year.
For the 2026/27 financial year, Vince expects sales growth of three to six percent year-on-year. It is also aiming for an operating margin adjusted for special effects of between 3.5 and four percent.
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