The company reported a 10.5 per cent year-on-year (YoY) increase in net sales to $64 million in the quarter ended May 2, 2026, driven by strong growth across both its direct-to-consumer (DTC) and wholesale businesses.
Vince Holding Corp has reported strong Q1 FY26 results, with net sales rising 10.5 per cent YoY to $64 million, driven by growth in both DTC and wholesale channels.
The gross profit and margins improved despite tariff pressures, while operating and net losses narrowed significantly.
Encouraged by sustained momentum and customer growth, the company raised its Q2 guidance to double digits.
“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 (CEO) of Vince Holding Corp.
He noted that strategic investments in customer experience helped drive double-digit growth in both new and reactivated customers while supporting healthy full-price selling.
DTC sales rose by 15.6 per cent YoY to $32 million, while wholesale revenue increased by 5.9 per cent to $32.1 million.
Margins improve despite tariff headwinds
The gross profit increased to $32.4 million from $29.2 million a year earlier. Gross margin improved slightly to 50.6 per cent of net sales from 50.3 per cent, benefiting from higher pricing and lower discounting, although these gains were partially offset by the impact of higher tariffs, VNCE said in a press release.
Selling, general and administrative (SG&A) expenses rose to $35 million, primarily due to increased employee benefit, marketing and advertising costs. However, SG&A as a percentage of sales improved to 54.7 per cent from 58 per cent in the prior-year period.
The company’s operating loss narrowed to $2.6 million. Net loss improved to $2.1 million, or $0.16 per share, compared with a net loss of $4.8 million, or $0.37 per share, a year earlier.
Segment performance showed continued strength in both business channels. Vince Wholesale generated operating income of $10.1 million, up from $9.4 million a year earlier. The DTC segment posted operating income of $1.8 million compared with an operating loss of $0.8 million in the prior-year quarter. Combined segment operating income increased to $12 million from $8.6 million.
At the end of the quarter, Vince operated 54 company-owned stores, four fewer than in the first quarter of FY25.
Vince projects double-digit Q2 sales growth
Looking ahead, Vince expects second quarter (Q2) FY26 net sales to increase by approximately 10-12 per cent YoY. Adjusted operating income is projected at 6.5-7 per cent of net sales, while adjusted EBITDA margin is expected to range between 8 per cent and 8.5 per cent.
For FY26, the company raised its outlook and now expects net sales growth of approximately 7-8 per cent compared with the prior year. Adjusted operating income is forecast at 4.0-4.5 per cent of net sales, while adjusted EBITDA is expected to reach 5.5-6 per cent of net sales.
The outlook assumes a 10 per cent tariff rate on applicable inventory receipts under Section 122 of the Trade Act of 1974 following a US Supreme Court ruling that struck down certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The guidance does not include any potential tariff refunds that may arise from the decision, added the release.
Fibre2Fashion News Desk (SG)
