Vince Holding posts strong Q3 performance and reveals positive outlook

Vince Holding Corp. reported robust financial results for the third quarter ended November 1, 2025, with total company net sales climbing 6.2 percent to 85.1 million dollars compared to the same period last year. This growth was widespread, fueled by a 6.7 percent increase in the wholesale segment and a 5.5 percent increase in the direct-to-consumer segment.

CEO Brendan Hoffman highlighted the strength of the direct-to-consumer channel, attributing the success to strategic enhancements like store renovations, an e-commerce site refresh, increased marketing, and the introduction of drop-ship capabilities. "We are extremely proud of our third quarter performance, delivering healthy sales growth across all channels while exceeding expectations for both top and bottom line results," Hoffman stated, noting that the momentum has carried into the fourth quarter with a record holiday sales weekend.

While gross profit dollars rose to 41.9 million dollars, the gross margin rate slightly contracted to 49.2 percent, primarily due to the unfavorable impact of higher tariffs and increased freight costs, which were partially offset by lower product costing, higher pricing, and less discounting. Despite the sales growth, net income for the quarter decreased to 2.7 million dollars, or 21 cents per diluted share, down from 4.3 million dollars (or 34 cents per diluted share) in the prior year, largely due to a significant rise in income tax expense, while adjusted EBITDA saw a modest decline to 6.5 million dollars from 7.4 million dollars.

Looking ahead, Vince projects continued growth for the full fiscal year 2025, expecting net sales to increase approximately 2 percent to 3 percent and adjusted EBITDA as a percentage of net sales to fall between 4 percent and 5 percent, even as the company anticipates 4 million dollars to 5 million dollars in incremental tariff costs for the fourth quarter.

The Company concluded the quarter operating 60 Vince stores, representing a net reduction of one store compared to the end of the third quarter of fiscal 2024.