Vince posts 27% increase in Q3 sales
New York-based fashion group Vince Holding Corp. achieved net sales of $87.5 million in the third quarter ended October 30, 2021, up 26.7% from $69.0 million in the same period in the previous year, as the company saw solid growth across its brand portfolio.
Quarterly sales in the group’s namesake Vince brand rose 27.3% year over year, from $61.6 million to $78.4 million. This reflected a 10.0% increase in wholesale revenues, which totaled $42.6 million, and 56.5% growth in direct-to-consumer sales, which were $35.7 million.
The company’s Rebecca Taylor and Parker business posted third-quarter net sales of $9.1 million, up 22.0% from $7.5 million in the prior-year period.
Full-company net income for Q3 was $2.2 million, or $0.18 per diluted share, down from $5.0 million, or $0.42 per diluted share, in the third quarter of 2020. This decline reflected an increase in selling, general and administrative expenses related to higher payroll and compensation costs and larger investments in marketing, as well as to the landlord rent concessions secured by the company in the third quarter of last year.
The company’s income in Q3 2021 also included an expense of $1.5 million related to the termination of its 2018 term loan facility.
“Our third quarter performance reflects the ongoing strength in our Vince brand,” said Vince CEO Jack Schwefel in a release. “Product and engagement continue to resonate with customers, and although we are facing challenges to our supply chain, our strong brand equity and high customer demand demonstrate the long-term opportunity of this brand.”
Year to date, Vince’s total net sales were $223.7 million, up 54.2% from $145.1 million in the first nine months of 2020. The company’s net loss for the period was $10.0 million, or $0.84 per diluted share, compared to a loss of $58.3 million, or $4.96 per diluted share, a year ago.
As Vince moves into the fourth quarter, Schwefel said that the company continues to focus on developing its e-commerce capabilities, elevating its marketing strategies, and driving growth in both its menswear business and international operations.
The company currently operates 83 stores under the Vince and Rebecca Taylor banners.
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