US clothing supplier Vince Holding Corp. has returned to profitability in the 2023/24 financial year despite a significant drop in sales. The group “took the right steps” in a “year of transformation”, explained interim CEO David Stefko in a statement published on Tuesday.
The company had indeed made drastic changes to its business model: the Rebecca Taylor brand was discontinued and the Parker label was sold. In addition, the clothing provider transferred the intellectual property rights of its core brand Vince to a joint venture with the fashion and media group Authentic Brands Group, while maintaining responsibility for the distribution of the label as part of a long-term licence agreement.
In the most recent financial year, which ended on 3 February, group sales amounted to 292.9 million US dollars, a decrease of 18.1 percent compared to 2022/23. The company attributed the losses primarily to the loss of revenue from Rebecca Taylor and Parker.
However, the restructuring and additional cost-cutting measures led to an improvement in earnings. The Group achieved a net profit of 25.4 million US dollars, after closing the previous year with a loss of 38.3 million US dollars.
