Vince Holding 3Q Profit Climbs on Cost Savings Program
By Thomas S. Green
Vince Holding Corp. (NYSE: VNCE) said third quarter gross profit was $37.2 million, or 44.2% of net sales, compared to gross profit of $29.8 million, or 30.2% of net sales, in the third quarter of fiscal 2022.
The company cited a transformation plan to reduce costs by over $30 million in the next three years as an important part of future growth.
The global retail company said it substantially completed winding down its Rebecca Taylor business, closed on a previously announced transaction with Authentic Brands Group and refinanced its ABL Credit Facility.
“We are pleased with our third quarter performance and the sequential improvement we delivered compared to the prior quarter despite incurring the first full period of royalty expenses,” said CEO Jack Schwefel. “We are in the early stages of implementing our transformation program which we expect to yield significant cost savings over the next three years to help to offset the changes to our cost structure given the royalty fees with our partnership with Authentic Brands Group.”
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