Vince (VNCE) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 rose 6.2% year-over-year to $85.1 million, with growth in both wholesale and direct-to-consumer channels.

• Gross profit was $41.9 million (49.2% of net sales), but gross margin declined from 50% last year due to higher tariffs and freight costs, partially offset by improved pricing and lower discounting.

• Net income was $2.7 million ($0.21 per share), down from $4.3 million ($0.34 per share) last year, mainly due to higher tax expense.

• Strategic initiatives included store renovations, e-commerce refresh, new digital initiatives, and a dropship strategy with early success in shoes.

• Completed a majority stake sale to P180 Vince Acquisition Co. and transitioned stock listing from NYSE to Nasdaq.

Financial highlights

• Wholesale channel sales grew 6.7% to $52.0 million, and direct-to-consumer segment rose 5.5% to $33.1 million year-over-year.

• Gross profit was $41.9 million (49.2% of net sales), down from 50% margin last year.

• Operating income was $5.4 million, down from $5.8 million in Q3 last year.

• Adjusted EBITDA was $6.5 million, down from $7.4 million year-over-year.

• Cash and cash equivalents at quarter-end were $1.1 million, with $47.3 million available under the revolving credit facility.

Outlook and guidance

• Q4 net sales expected to grow 3%-7%, with DTC segment growth outpacing total sales.

• Adjusted operating income as a percentage of net sales projected at flat to 2% for Q4; adjusted EBITDA margin at 2%-4%.

• Full-year net sales growth expected at 2%-3%, adjusted operating income margin at 2%-3%, and adjusted EBITDA margin at 4%-5%.

• Guidance incorporates $8-$9 million in incremental tariff costs for the year.

• Management expects to meet liquidity needs for the next twelve months, contingent on effective tariff mitigation, inventory management, and partner payment performance.