Vince Holding Corp. (VNCE) Q2 2025 Earnings Call Transcript
Total company net sales $73.2 million, a decrease of 1.3% year-over-year from $74.2 million. The decline was due to a 5.1% drop in the wholesale segment caused by delays in fall shipments due to tariff mitigation strategies, despite a 5.5% increase in the direct-to-consumer segment.
Gross profit $36.9 million or 50.4% of net sales, up from $35.1 million or 47.4% of net sales last year. The increase in gross margin rate was driven by lower product costing and higher pricing (340 basis points), lower discounting (210 basis points), partially offset by higher tariffs (170 basis points) and higher freight costs (100 basis points).
Selling, General and Administrative (SG&A) expenses $25.8 million or 35.2% of net sales, down from $34 million or 45.8% of net sales last year. The decrease was primarily due to $7.2 million in payments from the U.S. Department of Treasury under the Employee Retention Credit Program, with $5.6 million offsetting SG&A and $1.6 million recorded in other income.
Operating income $11.2 million, up from $1.1 million last year. Excluding the ERC payments, adjusted operating income as a percentage of sales was 7.6%, an increase of 604 basis points year-over-year.
Net interest expense $0.8 million, down from $1.6 million last year. The decrease was due to lower levels of debt under the term loan credit facility.
Long-term debt balance $31.1 million, a reduction of $23.3 million from $54.4 million last year, attributed to debt repayments.
Net income $12.1 million or $0.93 per share, up from $0.6 million or $0.05 per share last year. Excluding ERC payments, adjusted net income was $4.9 million or $0.38 per share.
Adjusted EBITDA $6.7 million, up from $2.7 million last year.
Net inventory $76.7 million, up from $66.3 million last year. The increase was driven by $5.2 million higher inventory carrying value due to tariffs and strategic decisions to ship goods earlier.
Trade with 70% Backtested Accuracy
Analyst Views on VNCE
About VNCE
About the author
Vince Holding Corp. (VNCE) Sees 17.57% Increase Over the Past Week: Key Insights
Momentum Investing Overview: Momentum investing focuses on following a stock's recent price trends, with the strategy of buying high and selling higher, relying on the assumption that established trends will continue.
Vince Holding Corp. Performance: Vince Holding Corp. (VNCE) has a Momentum Style Score of A and a Zacks Rank of #1 (Strong Buy), with significant price increases of 17.57% over the past week and 122.93% over the last year, outperforming the S&P 500.
Earnings Estimate Revisions: VNCE has seen positive earnings estimate revisions, with one estimate increasing for the current year and two for the next fiscal year, boosting its consensus estimate from $0.01 to $0.24.
Investment Recommendations: Zacks Investment Research highlights VNCE as a strong momentum pick and suggests it should be on investors' short lists, alongside other stocks expected to gain significantly in the near term.
Vince Holding (VNCE) Receives Strong Buy Upgrade: Reasons Explained
Vince Holding Corp. Upgrade: Vince Holding Corp. (VNCE) has been upgraded to a Zacks Rank #1 (Strong Buy) due to a significant increase in earnings estimates, indicating a positive outlook for the company's stock price.
Zacks Rating System: The Zacks rating system, which evaluates stocks based on earnings estimate revisions, has a strong track record, with Zacks Rank #1 stocks averaging a +25% annual return since 1988.
Earnings Estimate Revisions: Over the past three months, analysts have raised their earnings estimates for Vince Holding by 102.4%, reflecting an improving business trend that could lead to higher stock prices.
Investment Potential: The upgrade places Vince Holding in the top 5% of Zacks-covered stocks, suggesting it is a strong candidate for market-beating returns in the near term.
Vince Holding Corp. Reports Decline in Q3 Earnings
Earnings Decline: Vince Holding Corp. reported a profit of $2.73 million, or $0.21 per share, for the third quarter, down from $4.35 million, or $0.34 per share, in the previous year.
Adjusted Earnings: The company's adjusted earnings for the period remained the same at $2.73 million, or $0.21 per share, excluding certain items.
Revenue Growth: Vince Holding Corp. experienced a revenue increase of 6.2%, reaching $85.13 million compared to $80.16 million in the same quarter last year.
Earnings Summary: Key figures include earnings of $2.73 million, EPS of $0.21, and revenue of $85.13 million, reflecting a mixed performance in financial results.
Small Cap Consumer Research Confirms Buy Rating for Vince Holding (VNCE)
Analyst Recommendation: Small Cap Consumer Research has reiterated a Buy recommendation for Vince Holding (NasdaqCM:VNCE) with a projected one-year price target of $4.34/share, indicating an 85.26% upside from its current price of $2.34/share.
Projected Revenue and EPS: Vince Holding's projected annual revenue is estimated at $317 million, reflecting an 8.98% increase, with a non-GAAP EPS forecast of 0.43.
Fund Sentiment: There are currently 34 funds reporting positions in Vince Holding, with a slight decrease in ownership by 2.86% over the last quarter, while the average portfolio weight dedicated to VNCE has increased by 11.45%.
Shareholder Activity: Notable changes in shareholder positions include FreeGulliver reducing its holdings by 94.87%, while Two Sigma Investments increased its stake by over 1,000%, indicating varied investment strategies among institutional investors.
LuxExperience B.V. - Sponsored ADR (LUXE) Posts Q1 Loss, Falls Short of Revenue Projections
Quarterly Performance: LuxExperience B.V. reported a quarterly loss of $0.71 per share, significantly worse than the expected loss of $0.28, marking an earnings surprise of -153.57%. Revenue for the quarter was $670.38 million, missing estimates by 1.51%.
Stock Outlook: Despite a 28.9% increase in shares since the beginning of the year, the company's unfavorable earnings estimate revisions have led to a Zacks Rank #4 (Sell), indicating expected underperformance in the near future.
Industry Context: The Textile - Apparel industry, where LuxExperience operates, is currently ranked in the top 36% of Zacks industries, suggesting that overall industry performance could impact LuxExperience's stock.
Future Earnings Estimates: The consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $797.5 million, while the current fiscal year estimate is -$0.64 on $3.04 billion in revenues, indicating cautious expectations moving forward.
Vince Holding Corp. Launches on Nasdaq
Company Transition: Vince Holding Corp. has voluntarily transferred its trading from the New York Stock Exchange to Nasdaq under the ticker symbol "VNCE" and will celebrate this milestone by ringing the Nasdaq Closing Bell on October 23, 2025.
CEO Statement: Brendan Hoffman, CEO of VNCE, expressed excitement about the transition, highlighting the company's growth trajectory and commitment to delivering luxury and quality to customers.
Event Details: The Nasdaq Closing Bell ceremony will be broadcast live from the Nasdaq MarketSite Tower in New York City, starting at approximately 3:45 p.m. Eastern Time, with a live stream available online.
Company Overview: Vince Holding Corp. operates the Vince brand, known for luxury apparel and accessories, with 46 full-price retail stores, 14 outlet stores, and an e-commerce site, vince.com.
Vince Holding Corp. (VNCE) Sees 17.57% Increase Over the Past Week: Key Insights
Momentum Investing Overview: Momentum investing focuses on following a stock's recent price trends, with the strategy of buying high and selling higher, relying on the assumption that established trends will continue.
Vince Holding Corp. Performance: Vince Holding Corp. (VNCE) has a Momentum Style Score of A and a Zacks Rank of #1 (Strong Buy), with significant price increases of 17.57% over the past week and 122.93% over the last year, outperforming the S&P 500.
Earnings Estimate Revisions: VNCE has seen positive earnings estimate revisions, with one estimate increasing for the current year and two for the next fiscal year, boosting its consensus estimate from $0.01 to $0.24.
Investment Recommendations: Zacks Investment Research highlights VNCE as a strong momentum pick and suggests it should be on investors' short lists, alongside other stocks expected to gain significantly in the near term.
Vince Holding (VNCE) Receives Strong Buy Upgrade: Reasons Explained
Vince Holding Corp. Upgrade: Vince Holding Corp. (VNCE) has been upgraded to a Zacks Rank #1 (Strong Buy) due to a significant increase in earnings estimates, indicating a positive outlook for the company's stock price.
Zacks Rating System: The Zacks rating system, which evaluates stocks based on earnings estimate revisions, has a strong track record, with Zacks Rank #1 stocks averaging a +25% annual return since 1988.
Earnings Estimate Revisions: Over the past three months, analysts have raised their earnings estimates for Vince Holding by 102.4%, reflecting an improving business trend that could lead to higher stock prices.
Investment Potential: The upgrade places Vince Holding in the top 5% of Zacks-covered stocks, suggesting it is a strong candidate for market-beating returns in the near term.
Vince Holding Corp. Reports Decline in Q3 Earnings
Earnings Decline: Vince Holding Corp. reported a profit of $2.73 million, or $0.21 per share, for the third quarter, down from $4.35 million, or $0.34 per share, in the previous year.
Adjusted Earnings: The company's adjusted earnings for the period remained the same at $2.73 million, or $0.21 per share, excluding certain items.
Revenue Growth: Vince Holding Corp. experienced a revenue increase of 6.2%, reaching $85.13 million compared to $80.16 million in the same quarter last year.
Earnings Summary: Key figures include earnings of $2.73 million, EPS of $0.21, and revenue of $85.13 million, reflecting a mixed performance in financial results.
Small Cap Consumer Research Confirms Buy Rating for Vince Holding (VNCE)
Analyst Recommendation: Small Cap Consumer Research has reiterated a Buy recommendation for Vince Holding (NasdaqCM:VNCE) with a projected one-year price target of $4.34/share, indicating an 85.26% upside from its current price of $2.34/share.
Projected Revenue and EPS: Vince Holding's projected annual revenue is estimated at $317 million, reflecting an 8.98% increase, with a non-GAAP EPS forecast of 0.43.
Fund Sentiment: There are currently 34 funds reporting positions in Vince Holding, with a slight decrease in ownership by 2.86% over the last quarter, while the average portfolio weight dedicated to VNCE has increased by 11.45%.
Shareholder Activity: Notable changes in shareholder positions include FreeGulliver reducing its holdings by 94.87%, while Two Sigma Investments increased its stake by over 1,000%, indicating varied investment strategies among institutional investors.
LuxExperience B.V. - Sponsored ADR (LUXE) Posts Q1 Loss, Falls Short of Revenue Projections
Quarterly Performance: LuxExperience B.V. reported a quarterly loss of $0.71 per share, significantly worse than the expected loss of $0.28, marking an earnings surprise of -153.57%. Revenue for the quarter was $670.38 million, missing estimates by 1.51%.
Stock Outlook: Despite a 28.9% increase in shares since the beginning of the year, the company's unfavorable earnings estimate revisions have led to a Zacks Rank #4 (Sell), indicating expected underperformance in the near future.
Industry Context: The Textile - Apparel industry, where LuxExperience operates, is currently ranked in the top 36% of Zacks industries, suggesting that overall industry performance could impact LuxExperience's stock.
Future Earnings Estimates: The consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $797.5 million, while the current fiscal year estimate is -$0.64 on $3.04 billion in revenues, indicating cautious expectations moving forward.
Vince Holding Corp. Launches on Nasdaq
Company Transition: Vince Holding Corp. has voluntarily transferred its trading from the New York Stock Exchange to Nasdaq under the ticker symbol "VNCE" and will celebrate this milestone by ringing the Nasdaq Closing Bell on October 23, 2025.
CEO Statement: Brendan Hoffman, CEO of VNCE, expressed excitement about the transition, highlighting the company's growth trajectory and commitment to delivering luxury and quality to customers.
Event Details: The Nasdaq Closing Bell ceremony will be broadcast live from the Nasdaq MarketSite Tower in New York City, starting at approximately 3:45 p.m. Eastern Time, with a live stream available online.
Company Overview: Vince Holding Corp. operates the Vince brand, known for luxury apparel and accessories, with 46 full-price retail stores, 14 outlet stores, and an e-commerce site, vince.com.
