NEW YORK- Vince Holding Corp. (Nasdaq: VNCE) ('VNCE' or the 'Company'), a global retail platform, today reported its financial results for the second quarter ended August 1, 2026.
Brendan Hoffman, Chief Executive Officer of VNCE said, 'We delivered strong results this quarter, with excellent growth across both our direct-to-consumer and wholesale channels, and this momentum gives us confidence to raise our full-year guidance. Importantly, the recent completion of the OVO acquisition marks a pivotal moment for our Company. We are entering the streetwear market through a brand with deep cultural roots and an authentic customer connection, and we're bringing to it the operating discipline and infrastructure that have driven Vince's turnaround. The acquisition provides a significant growth runway and we see meaningful opportunities to expand OVO's retail presence and launch wholesale distribution through longstanding relationships, positioning the combined platform for substantial long-term value creation.'
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.
For the second quarter ended August 1, 2026:
Total Company net sales increased 11.7% to $81.8 million compared to $73.2 million in the second quarter of fiscal 2025. The year-over-year increase was driven by a 13.7% increase in the direct-to-consumer segment and a 10.4% increase in the wholesale segment.
Gross profit was $49.8 million, or 60.9% of net sales, compared to gross profit of $36.9 million, or 50.4% of net sales, in the second quarter of fiscal 2025. The increase in gross margin for the second quarter of fiscal 2026 includes a favorable impact of $10.4 million related to the IEEPA tariff refund, which offset the unfavorable impact from higher product costing which contributed negatively by approximately 160 basis points, and the unfavorable impact from higher freight costs of approximately 130 basis points. The gross margin rate, excluding the benefit of the tariff refund, was 48.2% in line with the Company's expectations.
Selling, general, and administrative expenses were $36.3 million, or 44.3% of sales, compared to $25.8 million, or 35.2% of sales, in the second quarter of fiscal 2025. The increase in SG&A dollars was primarily driven by anniversarying last year's $5.6 million benefit from the receipt of payroll tax credit payments from the U.S. Department of the Treasury under the Employee Retention Credit program (the 'ERC benefit') as well as $2.9 million related to transaction costs associated with the acquisition of October's Very Own ('OVO') operating business ('OVO transaction').
Income from operations was $13.6 million compared to income from operations of $11.2 million in the same period last year. Adjusted income from operations, which includes the benefit from tariff refunds in the second quarter of fiscal 2026, was $16.4 million compared to $5.5 million in the same period last year.
Income tax expense was $3.1 million compared to an income tax expense of $0.1 million in the same period last year. The expense is due to the impact of applying the Company's estimated annual effective tax rate to the year-to-date ordinary pre-tax income.
Net income was $10.6 million or $0.80 per diluted share compared to net income of $12.1 million or $0.93 per diluted share in the same period last year. Adjusted net income, which includes the benefit from tariff refunds in the second quarter of fiscal 2026, was $13.5 million or $1.02 per diluted share compared to $4.9 million or $0.38 in the same period last year.
Adjusted EBITDA*, which includes the benefit from tariff refunds in the second quarter of fiscal 2026, was $18.0 million compared to $6.7 million in the same period last year.
The Company ended the quarter with 53 company-operated Vince stores.
Second Quarter Review
Net sales increased 11.7% to $81.8 million as compared to the second quarter of fiscal 2025.
Wholesale segment sales increased 10.4% to $49.4 million compared to the second quarter of fiscal 2025.
Direct-to-consumer segment sales increased 13.7% to $32.4 million compared to the second quarter of fiscal 2025.
Income from operations excluding unallocated corporate expenses was $29.1 million compared to income from operations of $17.3 million in the same period last year.
Net Sales and Operating Results by Segment:
https://investors.vince.com/press-releases/press-release-details/2026/Vince-Holding-Corp--Reports-Second-Quarter-2026-Results/default.aspx
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