Vince (VNCE) Q4 2026 earnings summary

Executive summary

• Q4 net sales rose 4.7% year-over-year to $83.7 million, driven by 10.4% growth in direct-to-consumer, offsetting a 1.2% decline in wholesale.

• Q4 net loss was $3.6 million, including a $6 million bad debt charge related to the Saks reorganization; adjusted net income was $2.4 million.

• FY2025 net sales increased 2.2% to $300.0 million; net income was $6.4 million, with adjusted EBITDA at $15.1 million.

• Successfully navigated headwinds from Saks Global's reorganization, which impacted sales by $2 million in Q4 and created a $6 million bad debt expense.

• Continued investment in customer experience, store remodels, new openings, and digital expansion planned for 2026.

Financial highlights

• Q4 gross profit was $41.1 million (49.1% margin), down from 50.1% last year due to tariffs, promotions, and freight costs.

• Q4 SG&A expenses rose to $44 million (52.6% of net sales), mainly from $6 million bad debt expense tied to Saks.

• Q4 adjusted EBITDA was $4.5 million, down from $5.4 million prior year.

• FY2025 gross profit was $149.1 million (49.7% margin), up from $145.2 million (49.5% margin) last year.

• FY2025 SG&A was $139.9 million (46.6% of sales), with increases from Saks bad debt, marketing, and legal, partially offset by a $7.2 million Employee Retention Credit benefit.

Outlook and guidance

• Q1 FY2026 net sales expected to grow 8.5%-10.5% year-over-year; adjusted operating loss of -3.5% to -4.5% of sales.

• FY2026 net sales projected to increase 3%-6%; adjusted operating income 3.5%-4% of sales; adjusted EBITDA 5%-5.5% of sales.

• Outlook assumes a 15% tariff rate for applicable inventory; no benefit assumed from potential tariff refunds.