Vince earnings hit by Rebecca Taylor wind down, overall sales growth remains
Vince Holding revealed on Tuesday double-digit revenue growth for the recently ended third quarter, as sales decreases due to the winding down of its Rebecca Taylor brand were offset by sales growth at Vince.
The New York-based company said net sales increased 12.7% to $98.6 million, compared to $87.5 million in the same period last year, reflecting a 14.4% increase in Vince brand sales and a 2.2% decrease in Rebecca Taylor and Parker sales, combined.
Net loss, which included the impact of charges associated with the wind down of the Rebecca Taylor business, was $5.2 million or a loss of $0.43 per share, compared to a net income of $2.2 million or $0.18 per diluted share in the same period last year.
The company ended the quarter with 67 company-operated Vince stores and 18 company-operated Rebecca Taylor stores, a net increase of two stores since the third quarter of fiscal 2021.
The earnings update was the first since Vince Holdings announced on September 12 its decision to wind down its Rebecca Taylor business to focus its resources on the Vince brand.
“Our third quarter performance reflects continued growth from our Vince brand as we saw nice reception across our men’s and women’s assortment particularly as we transitioned into the cooler fall season," said Jack Schwefel, chief executive officer.
“Like many other retailers, we have taken aggressive actions to reduce our inventory balance to better position us as we move into preparing for our next fiscal year. We believe these actions combined with our previously announced strategic decision to exit the Rebecca Taylor business, as well as our focus on driving further efficiencies and enhanced disciplines across our organization, will position Vince for long-term profitable growth.”
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