VINCE HOLDING CORP. (VNCE) Q2 2025 Financial Results Summary

# Vince Holding Corp. (VNCE) Q2 2025 Financial Results Summary

The financial report for the second quarter of fiscal 2025 was released on September 10, 2025. Vince Holding Corp. (NYSE: VNCE) announced its financial results for the quarter ending August 2, 2025, showcasing both growth in certain areas and challenges in others.

### Financial Highlights:
– **Net Sales:**
– Total net sales were **$73.2 million**, a decrease of **1.3%** from **$74.2 million** in Q2 FY2024.
– **Wholesale Segment:** Decreased by **5.1%** to **$44.8 million**.
– **Direct-to-Consumer Segment:** Increased by **5.5%** to **$28.5 million**.

– **Gross Profit:**
– Gross profit reached **$36.9 million**, representing **50.4%** of net sales, up from **$35.1 million** or **47.4%** in Q2 FY2024.
– **Gross Margin Increase:**
– **340 basis points** improvement due to lower product costs and higher pricing.
– **210 basis points** improvement due to lower discounting.
– Partly offset by increases in tariffs (**170 basis points**) and freight costs (**100 basis points**).

– **Operating Expenses:**
– Selling, general, and administrative expenses were **$25.8 million** (or **35.2%** of sales), compared to **$34.0 million** (or **45.8%** of sales) in the same period last year.
– The decline in expenses included **$7.2 million** from payroll tax credit payments under the Employee Retention Credit program.

– **Income from Operations:**
– Income from operations was **$11.2 million**, compared to **$1.1 million** in Q2 FY2024.
– Adjusted income from operations was **$5.5 million**, excluding the effects of the ERC benefit.

– **Net Income:**
– Net income totaled **$12.1 million** or **$0.93** per diluted share, up from **$0.6 million** or **$0.05** per diluted share in Q2 FY2024.
– Adjusted net income, excluding the ERC benefit, was **$4.9 million** or **$0.38** per diluted share.

– **Adjusted EBITDA:**
– Adjusted EBITDA was **$6.7 million**, significantly up from **$2.7 million** in Q2 FY2024.

### Balance Sheet Highlights:
– At the end of the quarter:
– **Total Borrowings:** $31.1 million.
– **Excess Availability under Revolving Credit Facility:** $42.6 million.
– **Net Inventory:** $76.7 million compared to $66.3 million at the end of Q2 FY2024, attributed to higher inventory costs due to tariffs and earlier shipments.

### Store Operations:
– The company operated **58 company-operated Vince stores**, a net decrease of **3 stores** from the previous year.

### Future Outlook:
– For Q3 FY2025, Vince expects:
– Net sales to be approximately flat to up **3%** compared to the prior year.
– Adjusted operating income as a percentage of net sales to be between **1% to 4%**.
– Adjusted EBITDA as a percentage of net sales between **2% to 5%**.
– The company cautions about potential **$4 million to $5 million** in incremental tariff costs.

### Strategic Update:
– Vince had previously entered into a strategic partnership with Authentic Brands Group, obtaining a long-term license to use certain intellectual property, with a focus on enhancing the growth trajectory of the Vince brand.

### Shareholder Actions:
– There were no shares issued under the ATM program during the quarter. The company intends to use available capital strategically to fund future growth.

In summary, Vince Holding Corp. demonstrated notable improvements in gross margins, operating income levels, and adjusted EBITDA amidst challenges in overall sales figures, particularly in its wholesale segment compared to the prior year.

Here are the extracted tables from the press release in Markdown format:

### Condensed Consolidated Statements of Operations
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### Condensed Consolidated Balance Sheets
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