Vince (VNCE) Q1 2026 earnings summary

Executive summary

• Q1 2025 net sales declined 2.1% year-over-year to $57.9 million, primarily due to store closures, remodels, and softer direct-to-consumer traffic, while wholesale remained stable.

• Gross profit was $29.2 million (50.3% of net sales), down from $29.9 million (50.6%) last year, impacted by higher freight, duty, and distribution costs.

• Operating loss was $4.4 million versus operating income of $5.6 million last year; net loss was $4.8 million (loss per share $0.37) compared to net income of $4.4 million (EPS $0.35) in Q1 2024.

• Adjusted EBITDA was negative $3.0 million, compared to negative $1.5 million in the prior year.

• P180 acquired a majority stake in January 2025, triggering significant debt restructuring and capital changes.

Financial highlights

• SG&A expenses rose to $33.6 million (58% of net sales) from $31.9 million (54%) last year, driven by increased marketing, legal, IT, and remodel costs.

• Interest expense decreased to $0.8 million from $1.7 million due to lower debt levels.

• Inventory increased to $62.3 million from $56.7 million, driven by lower reserves and higher freight/duty costs.

• Cash and cash equivalents increased to $2.6 million from $0.6 million at prior year-end.

• Net cash used in operating activities was $11.8 million, mainly due to working capital outflows and net loss.

Outlook and guidance

• No full-year guidance provided due to macroeconomic and tariff uncertainties.

• Q2 2025 net sales expected to be flat to down 3% year-over-year; operating income as a percentage of net sales expected between -1% and +1%; adjusted EBITDA margin expected at 1%-4%.

• Management expects to meet liquidity covenants and cover obligations for the next 12 months, but notes risks from tariffs, macroeconomic factors, and partner payment timing.

• Guidance assumes 170 basis points in incremental tariff costs for Q2.

• The company must submit a business plan to the NYSE to regain compliance; delisting risk remains if requirements are not met.