Vince Holding Corp enjoys return to profit despite FY 2023 sales dip
While net sales at Vince were lower on the back of a wind-down of the Rebecca Taylor business resulting in sales of $292.9m versus $357.4m, the retailer booked an operating profit for the year 2023 of $31.6m from a loss the previous year of $25.4m. Net income came in at $25.4m from a net loss of $38.3m for the comparative period.
Vince Holding fiscal 2023 sales results
Vince interim CEO David Stefko said: "Fiscal 2023 was a transformative year for Vince as we completed the wind-down of the Rebecca Taylor business, entered into a strategic partnership with Authentic Brands Group, successfully refinanced our credit facilities, and launched a cost savings plan to improve our gross margin profile and align our expense structure with our go-forward operating model.
“In addition, we enhanced our focus on driving improved profitability through disciplined inventory management, lower promotional activity and a pullback in the off-price channel. While these actions impact topline results, as reflected in our fourth quarter performance and expectations for fiscal 2024, they help to support strong margin expansion, and we believe they are the right steps to take to further strengthen our foundation and enable long-term profitable growth."
Q4 in brief
Net sales fell to $75.3m from $91.3m driven by a decrease in Rebecca Taylor and Parker segment sales, combined, due to the previously announced wind down of the Rebecca Taylor business, and to a lesser extent a 6.3% decrease in Vince brand sales.
Operating loss improved to $1.7m from an operating loss of $5.5m.
Net loss improvement to $4.7m from $10.9m.
In October the company announced its Transformation Program focused on driving enhanced profitability through an improved gross margin profile and an optimised expense structure. The Transformation Program is expected to result in over $30m in savings over the next three years, including approximately $10m of savings in fiscal 2024.
The company said it remains focused on driving improved profitability in fiscal 2024 and expects actions including lower promotions and pull-back in the off-price channel to impact topline results in Q1 fiscal 2024 similar to Q4 2023.
Outlook
Q1 2024 net sales to decline in the high-single-digit range compared to $64.1m in the first quarter of fiscal 2023.
For full-year fiscal 2024 the company expects total company net sales to increase in the low-single-digit range compared to $292.9m in fiscal 2023.
"Vince Holding Corp enjoys return to profit despite FY 2023 sales dip" was originally created and published by Just Style, a GlobalData owned brand.
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