Business
Vince Holding Corp. Reports First Quarter 2024 Results
Net Sales of $59.2 Million Gross Margin Increased 440 basis points vs. Q1 FY2023 Q1 Profitability Exceeds Prior Outlook Reaffirms Full Year FY2024 Outlook
About this update from Vince Holding Corp.
[{"type":"text","content":"\nNet Sales of $59.2 Million\nGross Margin Increased 440 basis points vs. Q1 FY2023\nQ1 Profitability Exceeds Prior Outlook\nReaffirms Full Year FY2024 Outlook\n\n\n NEW YORK--(BUSINESS WIRE)--\nVince Holding Corp. (NYSE: VNCE) (\"VNCE\" or the \"Company\"), a global contemporary retailer, today reported its financial results for the first quarter ended May 4, 2024.\n\n\nDavid Stefko, Interim Chief Executive Officer of VNCE said, \"Our first quarter results reflect the strategic actions focused on driving improved full-price performance as we continued to reduce the promotional activity in our direct-to-consumer channel and pullback in our off-price business within our wholesale channel. As expected, these actions had a negative impact to our topline performance but helped to drive strong gross margin expansion despite incurring royalty expenses that we did not have in the prior year period. In addition, we continued to execute our Transformation Plan, and we believe we are on track to better align our cost structure with our current operating model inclusive of royalty expenses. Through these actions and initiatives we are well positioned to deliver on our objectives for this year and beyond.\"\n\n\nIn 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 to this press release for a reconciliation of GAAP measures to such non-GAAP measures.\n\n\nFor the first quarter ended May 4, 2024:\n\n\n\nTotal Company net sales decreased 7.6% to $59.2 million compared to $64.1 million in the first quarter of fiscal 2023. The year-over-year decline was in line with expectations and driven by a 7.5% decrease in Vince brand sales due to the reduction in promotional activity in the direct-to-consumer channel and the pullback in the off-price business within the wholesale channel. The prior year period included $0.1 million in Rebecca Taylor and Parker segment sales.\n\n\n\nGross profit was $29.9 million, or 50.6% of net sales, compared to gross profit of $29.6 million, or 46.2% of net sales, in the first quar...