Earnings and Revenue Top Expectations
Vince Holding Corp. (NASDAQ:VNCE) reported first-quarter results that exceeded Wall Street forecasts, although the luxury fashion retailer’s shares slipped about 3% in premarket trading on Tuesday following the announcement.
For the quarter ended May 2, the company posted a loss of $0.16 per share, outperforming analyst expectations of a $0.37 per share loss.
Revenue increased 10.5% year over year to $64.0 million, ahead of the consensus estimate of $60 million.
Growth Driven by Retail and Wholesale Strength
The company’s sales performance was supported by gains across both of its primary business channels.
Direct-to-consumer revenue rose 15.6% compared with the prior-year period, while wholesale revenue increased 5.9%.
The results reflected continued demand for the Vince brand across both company-operated and partner distribution channels.
Margins Improve Despite Tariff Pressure
Gross profit climbed to $32.4 million, representing 50.6% of net sales, compared with $29.2 million, or 50.3% of net sales, in the same quarter last year.
The improvement in gross margin was driven by stronger pricing and reduced promotional activity. Those gains were partially offset by higher tariff-related costs.
“We delivered strong first quarter results that demonstrate the powerful momentum we’ve built is not only sustained but accelerating,” said Brendan Hoffman, Chief Executive Officer.
Company Forecasts Another Strong Quarter
Looking ahead, Vince expects second-quarter net sales to increase between 10% and 12% year over year.
The company also forecasts adjusted operating income as a percentage of sales in a range of 6.5% to 7.0%.
At the midpoint of guidance, revenue growth would be approximately 11% for the quarter.
Full-Year Guidance Raised
Management also increased its outlook for fiscal 2026 following the stronger-than-expected start to the year.
The company now anticipates annual net sales growth of 7% to 8% compared with the previous year, alongside adjusted operating income representing 4% to 4.5% of sales.
The revised forecast reflects confidence in continued demand trends and operational execution across the business.
Balance Sheet Remains Stable
At the end of the quarter, Vince operated 54 company-owned stores.
The company also reported $31.2 million of excess availability under its revolving credit facility, providing additional financial flexibility as it executes its growth strategy and expansion plans.