Vince continues to see sales declines in fourth quarter
Vince Holding Corp. revealed its preliminary Q4 financial results on Thursday, reporting a year-over-year decrease of 28.4% in its net sales as the Covid-19 pandemic continued to take its toll on the New York-based fashion group’s operations.
In the fourth quarter ended January 30, 2021, the company announced net sales of $74.8 million, down from $104.4 million in the same period in the previous year.
This decline reflected a 20.4% year-over-year decrease at the group’s namesake Vince brand, where quarterly sales totaled $69.5 million, and a 68.9% decline at the Rebecca Taylor and Parker business, which posted $5.3 million in sales.
At the Vince brand, wholesale revenues were $39.1 million, down 12.9% from the prior-year period, while direct-to-consumer sales fell 28.4% to $30.4 million.
Vince Holding CFO Dave Stefko was, however, keen to point out that, despite the year-over-year declines, the company’s sales have continued to make sequential improvements.
“We saw sequential improvement in Vince during the fourth quarter led by our wholesale business,” he said in a release. “Within the wholesale channel, retail sales continue to improve as we believe we are taking share within the contemporary luxury category. At Rebecca Taylor, the decrease in sales reflect a resetting of the brand including an elimination of one of our seasonal collections.”
Vince Holding’s quarterly loss from operations came to $3.9 million, compared to a loss of $3.3 million in the same period last year.
For the full fiscal year 2020, the group reported total net sales of $219.9 million, down 41.4% from $375.2 million in fiscal 2019. Annual sales at the Vince brand fell 36.0% to $192.1 million, while Rebecca Taylor and Parker posted sales of $27.8 million, reflecting a 62.9% decrease.
The company’s operating loss for the year was $61.1 million, compared to an operating loss of $20.4 million in fiscal 2019.
Looking forward, Stefko struck an optimistic note when speaking of the company’s plans for the near future.
“We are enthusiastic about the relaunch for spring which has been received with favorable response,” he explained. “As we continue to navigate through the recovery of the macro-environment, we will remain focused on maintaining disciplined cost controls and optimizing liquidity as we position our brands for the future.”
“As the world recovers from the COVID pandemic and life begins to normalize, we are excited about the future of our brands,” added recently appointed CEO Jack Schwefel, highlighting the potential of both the Vince and Rebecca Taylor and Parker brands.
“I look forward to working with the teams as we execute an omni-channel strategy and data-driven merchandising and marketing approach to enable each of these brands to achieve their long term potential,” said the executive.
Due to continued uncertainty surrounding the coronavirus pandemic, Vince Holding, which ended the fourth quarter with 71 company-operated stores, did not provide financial guidance for fiscal 2021. The company intends to report its complete fourth-quarter and full-year 2020 financial results in conjunction with its annual report.
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