Vince revenues drop 60% in Q2
New York-based fashion group Vince Holding Corp announced its second-quarter financial results on Monday, reporting a 59.9 percent decline in net sales, despite growing momentum in its e-commerce business, following the impacts of the Covid-19 pandemic.
For the second quarter ended August 1, 2020, the company’s net sales totalled $37 million, down from $92.2 million reported in the prior-year period.
Sales at the group’s namesake Vince brand fell 54.9 percent to $32.2 million, including a 60.5 percent decrease in the business’ wholesale revenues and a 46.2 percent decline in its direct-to-consumer segment.
At the company’s recently acquired Rebecca Taylor and Parker business, net sales decreased 76.9 percent to $4.8 million.
The group’s net loss for the quarter came to $15.1 million or $1.28 per share compared to a net loss of $19.5 million or $1.67 per share in the same period last year.
“Looking back on our second quarter results, we began to rebuild momentum at Vince, following the initial impact of the pandemic, as consumer buying shifted to ecommerce and stores slowly re-opened,” explained David Stefko, interim CEO and CFO.
The executive said that its Vince brand’s e-commerce sales grew over 60 percent during the quarter resulting in a shift in focus.
“We have reprioritized our growth strategies to align with the near-term environment with a focus on e-commerce initiatives, maintaining our strong connection with our customers and expanding our reach through our direct-to-consumer and wholesale presence. For Rebecca Taylor, we are excited about the anticipation among our wholesale partners as we prepare to relaunch the brand and return to our elevated casual and feminine flirty roots.”
Due to the uncertainty related to the impact of the Covid-19 pandemic, Vince did not provide financial guidance for fiscal 2020.
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