Vince Holding Corp. Reports Second Quarter 2025 Results

NEW YORK--( BUSINESS WIRE)--Vince Holding Corp. (NYSE: VNCE) ("VNCE" or the "Company"), a global contemporary retailer, today reported its financial results for the second quarter ended August 2, 2025.

Brendan Hoffman, Chief Executive Officer of VNCE said, "We are very proud of our second quarter performance which reflects disciplined execution and strong customer reception to our product offerings especially as we elongated our full-price selling season. As we remain mindful of the dynamic macro environment, our ability to navigate today's challenges while preserving product quality and customer loyalty remains our utmost priority. Given the strength of our underlying trends, we are pleased to be in a position to begin to reinvest in the business as we remain focused on the growth opportunities ahead for the Vince brand as well as the Vince Holding Corp. platform."

In this press release, the Company is presenting its financial results in conformity with U.S. generally accepted accounting principles ("GAAP") as well as on an "adjusted" basis. Adjusted results presented in this press release are non-GAAP financial measures. See "Non-GAAP Financial Measures" below for more information about the Company's use of non-GAAP financial measures and Exhibit 3 and Exhibit 4 to this press release for a reconciliation of GAAP measures to such non-GAAP measures.

For the second quarter ended August 2, 2025:

Second Quarter Review

Net Sales and Operating Results by Segment:

Three Months Ended

August 2,

August 3,

(in thousands)

2025

2024

Net Sales:

Vince Wholesale

44,762

47,184

Vince Direct-to-consumer

28,479

26,985

Total net sales

73,241

74,169

Income (loss) from operations:

Vince Wholesale

17,058

16,663

Vince Direct-to-consumer

211

(1,398

)

Total segment income from operations

17,269

15,265

Unallocated corporate (1)

(6,118

)

(14,135

)

Total income from operations

11,151

1,130

(1) Unallocated corporate expenses are related to the Vince brand and are comprised of selling, general and administrative expenses attributable to corporate and administrative activities (such as marketing, design, finance, information technology, legal and human resource departments), and other charges that are not directly attributable to the Company's Vince Wholesale and Vince Direct-to-consumer reportable segments. In addition, for the three months ended August 2, 2025, unallocated corporate expenses includes approximately $5.6 million of ERC benefit.

Balance Sheet

At the end of the second quarter of fiscal 2025, total borrowings under the Company's debt agreements totaled $31.1 million and the Company had $42.6 million of excess availability under its revolving credit facility.

Net inventory at the end of the second quarter of fiscal 2025 was $76.7 million compared to $66.3 million at the end of the second quarter of fiscal 2024. The year-over-year increase in inventory was driven by approximately $5.2 million higher inventory carrying value due to tariffs as well as our strategic decision to ship goods earlier in advance of the expiration of reciprocal tariff extensions.

During the quarter ended August 2, 2025, the Company did not issue shares of common stock under the ATM program. The Company continues to have shares available under the program to exercise with proceeds to be used as sources, along with cash from operations, to fund future growth.

Outlook

For the third quarter of fiscal 2025 the Company expects the following:

• Net sales to be approximately flat to up 3% compared to the prior year period.

• Adjusted operating income as a percentage of net sales to be approximately 1% to 4%.

• Adjusted EBITDA as a percentage of net sales to be approximately 2% to 5%.

The above guidance assumes $4 million to $5 million in expected incremental tariff costs, of which the Company expects to mitigate approximately 50% through changes to country of origin, vendor negotiations as well as select and strategic price increases.

Given the uncertainty related to the potential impact and duration of current tariff policy, the Company is not providing guidance for the full year fiscal 2025.

Strategic Partnership with Authentic Brands Group

On May 25, 2023, the Company announced that it completed the previously announced transaction (the "Authentic Transaction") with Authentic Brands Group ("Authentic").

In connection with the Authentic Transaction, VNCE entered into an exclusive, long-term license agreement (the "License Agreement") with Authentic for usage of the contributed intellectual property for VNCE's existing business in a manner consistent with the Company's current wholesale, retail and e-commerce operations. The License Agreement contains an initial ten-year term and eight ten-year renewal options allowing VNCE to renew the agreement.

*Non-GAAP Financial Measures

In addition to reporting financial results in accordance with GAAP, the Company has provided, with respect to the financial results relating to the three and six months ended August 2, 2025 and August 3, 2024, adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization, share-based compensation, capitalized cloud computing amortization, ERC benefit, and gain on sale of Rebecca Taylor, Inc. and its wholly owned subsidiary ("Gain on Sale of Subsidiary"). For the three and six months ended August 2, 2025 and August 3, 2024, respectively, the Company has provided adjusted income (loss) from operations, adjusted income (loss) before income taxes and equity in net income (loss) of equity method investment, adjusted income (loss) before equity in net income (loss) of equity method investment, adjusted net income (loss), and adjusted earnings (loss) per share, which are non-GAAP measures, in order to eliminate the effect of the ERC benefit, Discrete Tax Effect Associated with ERC benefit, and Gain on Sale of Subsidiary.

The Company believes that the presentation of these non-GAAP measures facilitates an understanding of the Company's continuing operations without the impact associated with the aforementioned items. While these types of events can and do recur periodically, they are excluded from the indicated financial information due to their impact on the comparability of earnings across periods. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP results has been provided in Exhibit 3 and Exhibit 4 to this press release.

Conference Call

A conference call to discuss the first quarter results will be held today, September 10, 2025, at 4:30 p.m. ET, hosted by Vince Holding Corp. Chief Executive Officer, Brendan Hoffman, and Chief Financial Officer, Yuji Okumura. During the conference call, the Company may make comments concerning business and financial developments, trends and other business or financial matters. The Company's comments, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

Those who wish to participate in the call may do so by dialing (833) 470-1428, conference ID 030527. Any interested party will also have the opportunity to access the call via the Internet at http://investors.vince.com/. To listen to the live call, please go to the website at least 15 minutes early to register and download any necessary audio software. For those who cannot listen to the live broadcast, a recording will be available for 12 months after the date of the event. Recordings may be accessed at http://investors.vince.com.

ABOUT VINCE HOLDING CORP.

Vince Holding Corp. is a global retail company that operates the Vince brand women's and men's ready to wear business. Vince, established in 2002, is a leading global luxury apparel and accessories brand best known for creating elevated yet understated pieces for every day effortless style. Vince Holding Corp. operates 45 full-price retail stores, 14 outlet stores, and its e-commerce site, as well as through premium wholesale channels globally. Please visit www.vince.com for more information.

Forward-Looking Statements: This document, and any statements incorporated by reference herein contain forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include the statements under “Outlook” above as well as statements regarding, among other things, our current expectations about possible or assumed future results of operations of the Company and are indicated by words or phrases such as "may," "will," "should," "believe," "expect," "seek," "anticipate," "intend," "estimate," "plan," "target," "project," "forecast," "envision" and other similar phrases. Although we believe the assumptions and expectations reflected in these forward-looking statements are reasonable, these assumptions and expectations may not prove to be correct and we may not achieve the results or benefits anticipated. These forward-looking statements are not guarantees of actual results, and our actual results may differ materially from those suggested in the forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, including, without limitation: changes to and unpredictability in the trade policies and tariffs imposed by the U.S. and the governments of other nations; our ability to maintain adequate cash flow from operations or availability under our revolving credit facility to meet our liquidity needs; general economic conditions; restrictions on our operations under our credit facilities; our ability to improve our profitability; our ability to maintain our larger wholesale partners; our ability to accurately forecast customer demand for our products; our ability to maintain the license agreement with ABG Vince, a subsidiary of Authentic Brands Group; ABG Vince's expansion of the Vince brand into other categories and territories; ABG Vince's approval rights and other actions; our ability to realize the benefits of our strategic initiatives; the execution of our customer strategy; our ability to make lease payments when due; our ability to open retail stores under favorable lease terms and operate and maintain new and existing retail stores successfully; our operating experience and brand recognition in international markets; our ability to remediate the identified material weakness in our internal control over financial reporting; our ability to comply with domestic and international laws, regulations and orders; increased scrutiny regarding our approach to sustainability matters and environmental, social and governance practices; competition in the apparel and fashion industry; the transition associated with the appointment of new chief executive officer and new chief financial officer; our ability to attract and retain key personnel; seasonal and quarterly variations in our revenue and income; the protection and enforcement of intellectual property rights relating to the Vince brand; our ability to successfully conclude remaining matters following the wind down of the Rebecca Taylor business; the extent of our foreign sourcing; our reliance on independent manufacturers; our ability to ensure the proper operation of the distribution facilities by third-party logistics providers; fluctuations in the price, availability and quality of raw materials; the ethical business and compliance practices of our independent manufacturers; our ability to mitigate system or data security issues, such as cyber or malware attacks, as well as other major system failures; our ability to adopt, optimize and improve our information technology systems, processes and functions; our ability to comply with privacy-related obligations; our ability to regain compliance with the New York Stock Exchange (the “NYSE”) Listed Company Manual and maintain a listing of our common stock on the NYSE; our status as a “controlled company”; our status as a “smaller reporting company”; and other factors as set forth from time to time in our Securities and Exchange Commission filings, including those described under "Item 1A—Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We intend these forward-looking statements to speak only as of the time of this release and do not undertake to update or revise them as more information becomes available, except as required by law.

Vince Holding Corp. and Subsidiaries

Exhibit (1)

Condensed Consolidated Statements of Operations

(Unaudited, amounts in thousands except percentages, share and per share data)

Three Months Ended

Six Months Ended

August 2,

August 3,

August 2,

August 3,

2025

2024

2025

2024

Net Sales

73,241

74,169

131,174

133,340

Cost of products sold

36,303

39,038

65,073

68,296

Gross profit

36,938

35,131

66,101

65,044

as a % of net sales

50.4

47.4

50.4

48.8

Gain on sale of subsidiary

—

(7,634

)

Selling, general and administrative expenses

25,787

34,001

59,388

65,944

as a % of net sales

35.2

45.8

45.3

49.5

Income from operations

11,151

1,130

6,713

6,734

as a % of net sales

15.2

1.5

5.1

Interest expense, net

849

1,647

1,705

3,293

Other (income)

(1,560

)

—

(1,560

)

—

Income (loss) before income taxes and equity in net income (loss) of equity method investment

11,862

(517

)

6,568

3,441

Provision (benefit) for income taxes

(794

)

(1,681

)

Income before equity in net income (loss) of equity method investment

11,804

277

6,510

5,122

Equity in net income (loss) of equity method investment

256

292

747

(173

)

Net income

12,060

569

7,257

4,949

Earnings per share:

Basic earnings per share

0.93

0.05

0.56

0.39

Diluted earnings per share

0.93

0.05

0.56

0.39

Weighted average shares outstanding:

Basic

12,906,045

12,569,488

12,863,100

12,538,695

Diluted

12,958,739

12,617,085

12,950,828

12,606,575

Vince Holding Corp. and Subsidiaries

Exhibit (2)

Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands)

August 2,

February 1,

August 3,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

777

607

711

Trade receivables, net

29,405

32,927

35,054

Inventories, net

76,705

59,146

66,343

Prepaid expenses and other current assets

5,184

3,896

6,564

Total current assets

112,071

96,576

108,672

Property and equipment, net

8,416

7,378

6,298

Operating lease right-of-use assets

92,265

91,209

79,659

Goodwill

—

31,973

Equity method investment

22,183

23,464

24,727

Other assets

4,037

4,108

2,294

Total assets

238,972

222,735

253,623

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

35,882

35,090

36,736

Accrued salaries and employee benefits

8,342

8,709

6,442

Other accrued expenses

10,443

13,722

9,545

Short-term lease liabilities

15,069

16,025

14,787

Total current liabilities

69,736

73,546

67,510

Long-term debt

31,096

19,156

54,401

Long-term lease liabilities

87,752

87,180

75,704

Deferred income tax liability and other liabilities

1,093

1,094

3,567

Stockholders' equity

49,295

41,759

52,441

Total liabilities and stockholders' equity

238,972

222,735

253,623

Vince Holding Corp. and Subsidiaries

Exhibit (3)

Reconciliation of GAAP to Non-GAAP measures

(Unaudited, amounts in thousands except share and per share amounts)

For the Three Months ended August 2, 2025

As Reported (GAAP)

ERC Benefit

Discrete Tax Effect Associated With ERC Benefit

As Adjusted

(Non-GAAP)

Income from operations

11,151

5,613

—

5,538

Interest expense, net

849

—

849

Other (income)

(1,560

)

(1,560

)

—

Income before income taxes and equity in net income of equity method investment.

11,862

7,173

—

4,689

Provision for income taxes

—

Income before equity in net income of equity method investment

11,804

7,173

(58

)

4,689

Equity in net income of equity method investment

256

—

256

Net income

12,060

7,173

(58

)

4,945

Earnings per share - diluted (1)

0.93

0.55

—

0.38

For the Six Months ended August 2, 2025

As Reported (GAAP)

ERC Benefit

Discrete Tax Effect Associated With ERC Benefit

As Adjusted

(Non-GAAP)

Income from operations

6,713

5,613

—

1,100

Interest expense, net

1,705

—

1,705

Other (income)

(1,560

)

(1,560

)

—

Income (loss) before income taxes and equity in net income of equity method investment.

6,568

7,173

—

(605

)

Provision for income taxes

—

Income (loss) before equity in net income of equity method investment

6,510

7,173

(58

)

(605

)

Equity in net income of equity method investment

747

—

747

Net income

7,257

7,173

(58

)

142

Earnings per share - diluted (1)

0.56

0.55

—

0.01

Vince Holding Corp. and Subsidiaries

Exhibit (3)

Reconciliation of GAAP to Non-GAAP measures

(Unaudited, amounts in thousands except share and per share amounts)

For the Three Months ended August 3, 2024

As Reported (GAAP)

Gain on Sale of Subsidiary

As Adjusted

(Non-GAAP)

Income from operations

1,130

—

1,130

Interest expense, net

1,647

—

1,647

Loss before income taxes and equity in net income of equity method investment

(517

)

—

(517

)

Benefit for income taxes

(794

)

—

(794

)

Income before equity in net income of equity method investment

277

—

277

Equity in net income of equity method investment

292

—

292

Net income

569

—

569

Earnings per share - diluted (2)

0.05

—

0.05

For the Six Months ended August 3, 2024

As Reported (GAAP)

Gain on Sale of Subsidiary

As Adjusted

(Non-GAAP)

Income (loss) from operations

6,734

7,634

(900

)

Interest expense, net

3,293

—

3,293

Income (loss) before income taxes and equity in net loss of equity method investment

3,441

7,634

(4,193

)

Benefit for income taxes

(1,681

)

—

(1,681

)

Income (loss) before equity in net loss of equity method investment

5,122

7,634

(2,512

)

Equity in net loss of equity method investment

(173

)

—

(173

)

Net income (loss)

4,949

7,634

(2,685

)

Earnings (loss) per share - diluted (2)

0.39

0.61

(0.21

)

(1) As reported and as adjusted are based on diluted weighted-average shares outstanding of 12,958,739 for the three months ended August 2, 2025. As reported and as adjusted are based on diluted weighted-average shares outstanding of 12,950,828 for the six months ended August 2, 2025.

(2) As reported and as adjusted are based on diluted weighted-average shares outstanding of 12,617,085 for the three months ended August 3, 2024. As reported is based on diluted weighted-average shares outstanding of 12,606,575 and as adjusted is based on basic weighted average shares outstanding of 12,538,695 for the six months ended August 3, 2024. Accordingly, the sum of the as reported earnings (loss) per share and the reconciling items may not equal the as adjusted earnings (loss) per share.

Vince Holding Corp. and Subsidiaries

Exhibit (4)

Reconciliation of Net Income to Adjusted EBITDA

(Unaudited, amounts in thousands)

Three Months Ended

Six Months Ended

August 2,

August 3,

August 2,

August 3,

2025

2024

2025

2024

Net income

12,060

569

7,257

4,949

Interest expense, net

849

1,647

1,705

3,293

Provision (benefit) for income taxes

(794

)

(1,681

)

Depreciation and amortization

773

1,022

1,534

2,035

Share-based compensation

255

242

250

Capitalized cloud computing amortization

—

ERC benefit

(7,173

)

—

(7,173

)

—

Gain on sale of subsidiary

—

(7,634

)

Adjusted EBITDA

6,674

2,699

3,646

1,212