Vince Holding Corp. announced its financial results for the second quarter ended August 2, 2025, reporting a slight net sales decrease of 1.3% to $73.2 million. Despite the modest revenue dip, the company delivered a significant surge in profitability, with quarterly earnings of $0.38 per diluted share, beating analyst estimates for losses of $0.10 per share. Revenue of $73.24 million also surpassed Street estimates of $72.88 million.
Gross profit for the quarter increased by 5.1% to $36.9 million, leading to a gross margin expansion to 50.4% from 47.4% in the prior year. This improvement was primarily driven by a 340 basis point favorable impact from lower product costing and higher pricing, alongside a 210 basis point favorable impact from reduced discounting. Selling, general and administrative (SGA) expenses decreased substantially by 24.2% to $25.8 million, partly due to a $5.6 million Employee Retention Credit (ERC) benefit.
Operating income for Q2 2025 surged to $11.2 million, a significant improvement from $1.1 million in the prior year, while net income reached $12.1 million. The Direct-to-Consumer (DTC) segment saw a 5.5% increase in net sales to $28.5 million, with comparable sales rising by 8.1%, and turned an operating loss into an income of $0.21 million. The Wholesale segment's net sales decreased 5.1% to $44.8 million, primarily due to delayed fall shipments.
The company also reported a reduction in long-term debt, which decreased by $23.3 million year-over-year to $31.1 million at the end of Q2 2025. As of August 2, 2025, $42.6 million was available under the 2023 Revolving Credit Facility, indicating improved liquidity. Chief Executive Officer Brendan Hoffman attributed the performance to disciplined execution and strong customer reception, especially during an elongated full-price selling season.
Vince Holding Corp. is not providing full-year fiscal 2025 guidance due to ongoing macroeconomic volatility and tariff uncertainties. However, for the third quarter of fiscal 2025, the company anticipates net sales to be approximately flat to up low single digits compared to the prior year. Operating income as a percentage of net sales is projected to be between 1% and 4%, with adjusted EBITDA as a percentage of net sales expected to be between 2% and 5%.
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