Vince (VNCE) Q1 2027 earnings summary

Executive summary

• Net sales increased 10.5% year-over-year to $64.0 million, with direct-to-consumer up 15.6% and wholesale up 5.9%, both segments contributing to growth.

• Gross profit rose to $32.4 million (50.6% margin), up from $29.2 million (50.3%), aided by higher pricing and lower discounting, partially offset by tariffs.

• Operating loss narrowed to $2.6 million from $4.4 million, and net loss improved to $2.1 million, or $(0.16) per share, versus $4.8 million, or $(0.37) per share, last year.

• Adjusted EBITDA loss reduced to $1.1 million from $3.0 million year-over-year.

• Full price customer acquisition and reactivation drove double-digit growth in new and returning customers.

Financial highlights

• SG&A expenses were $35.0 million (54.7% of sales), up from $33.6 million (58.0%) last year, mainly due to higher benefit, marketing, and advertising costs.

• Net inventory increased to $70.8 million, primarily due to higher tariff-driven carrying value.

• Interest expense decreased to $0.6 million from $0.9 million year-over-year.

• Ended quarter with 54 company-operated stores, including 42 full-price and 12 outlet stores.

• Income from operations excluding unallocated corporate expenses was $12.0 million, up from $8.6 million.

Outlook and guidance

• Q2 net sales expected to increase 10–12% year-over-year; adjusted operating income margin projected at 6.5–7%, and adjusted EBITDA margin at 8–8.5%.

• Fiscal 2026 net sales expected to rise 7–8% over fiscal 2025; adjusted operating income margin of 4–4.5%, and adjusted EBITDA margin of 5.5–6%.

• Guidance excludes potential tariff refunds due to uncertainty in timing and amount.

• Management expects to meet liquidity covenants and believes available resources will be sufficient for the next twelve months, subject to macroeconomic and trade policy risks.

• Guidance assumes a 10% tariff rate for applicable inventory receipts.