Vince Holdings, the New York-based fashion group, has announced strong sales growth in the second quarter, driven by the performance of its Vince brand. However, the company has also revealed its plans to close its Rebecca Taylor brand due to challenges in the industry caused by macroeconomic and pandemic-related issues.

In the second quarter, Vince Holdings reported a 13.4% increase in net sales, reaching $89.2 million compared to $78.7 million in the same period last year. This growth was largely attributed to the success of the Vince brand, which saw a significant 20.5% increase in sales. On the other hand, sales for the Rebecca Taylor and Parker brands experienced a significant decline of 27.9%.

While the sales growth is positive, Vince Holdings also reported widening profit losses for the quarter. The company’s net loss was $15 million, or a loss of $1.23 per share, compared to a net loss of $0.6 million, or a loss of $0.05 per share, in the same period last year.

Despite these challenges, CEO Jack Schwefel remains optimistic about the momentum seen in Vince’s women’s and men’s businesses during the second quarter. He attributes this success to the return of customers to more normalized activities and events, as well as the appeal of Vince’s versatile and sophisticated assortment.

Schwefel acknowledges the difficult macro environment and increased pressure on profitability but assures that the company is focused on executing its strategic initiatives for the Vince brand. This includes the upcoming relaunch of the brand’s e-commerce platform.

As part of its earnings announcement, Vince Holdings has made the decision to close the Rebecca Taylor brand. The company recognizes the impact of macroeconomic and pandemic-related issues in the industry and believes that closing Rebecca Taylor will allow them to refocus on their core businesses and strengthen their overall financial foundation for the long-term.

Currently, Vince Holdings operates 67 company-operated Vince stores and 18 company-operated Rebecca Taylor stores. This represents a net increase of 7 company-operated Rebecca Taylor stores since the second quarter of last year.

Useful links:
1. Vince Official Website
2. Rebecca Taylor Official Website