Vince Holdings, the fashion company based in New York, has announced its financial results for the third quarter, showing a decline of 14.7% in sales to $84.1 million. This decrease in sales was mainly due to the closure of the Rebecca Taylor and Parker segments, which resulted in a complete loss of sales for those brands. However, there was also a 6.2% decrease in sales for the Vince brand itself.

Despite these challenges, the company reported a net income of $1 million for the quarter, a significant improvement compared to the net loss of $5.2 million during the same period last year. This positive result is attributed to the implementation of the company’s transformation program and the offsetting of royalty fees through its partnership with Authentic Brands Group.

Following the majority stake acquisition by Authentic Brands Group, Vince Holdings has established a new subsidiary called ABG Vince. Under the terms of the deal, Authentic Brands Group is now the licensing partner for the Vince brand and will oversee its retail stores, wholesale accounts, and e-commerce operations. This agreement is set to last for an initial term of ten years, with options for renewal.

Despite the setbacks caused by the closure of Rebecca Taylor and Parker, Vince Holdings remains optimistic about its future. The company is actively focused on improving its profitability and positioning itself for long-term success. With the ongoing implementation of its transformation program, Vince Holdings expects to achieve significant cost savings over the next three years.

Overall, Vince Holdings is confident in its ability to adapt to the evolving fashion industry and is determined to deliver value to its shareholders. The partnership with Authentic Brands Group and the company’s continued transformation efforts are key factors that will contribute to its growth and success in the future.

Useful Links:
Official Vince Holdings Website
Authentic Brands Group Website