On Thursday, Vince reported that it cut its net loss for the second quarter to $600,000, or 5 cents a share, compared to a net loss of $15.1 million, or $1.28 a share in the same period last year.
Income from operations was $2.6 million for the period ended July 31, compared to a loss from operations of $14 million in the same period last year.
Net sales increased 112.5 percent to $78.7 million, compared to $37 million in the same period last year reflecting a 108.5 percent increase in Vince brand sales and a 139.4 percent jump in the Rebecca Taylor and Parker brands.
The gross margin rate was 45 percent compared to 36 percent in the same period last year.
“We are pleased with our performance in the quarter, particularly with the Vince brand approaching pre-pandemic levels driven by strength in our direct-to-consumer business,” Jack Schwefel, chief executive officer, said in a statement. “The brand continues to resonate with both women and men with sophisticated, high-quality assortments. Going forward,” Schwefel added, “we will continue to focus on accelerating direct-to-consumer as well as our growth strategies of building out our e-commerce capabilities, strengthening brand awareness through marketing, and accelerating growth in men’s.
“At Rebecca Taylor, we remain encouraged by the long-term potential we see for this brand as we continue to leverage the same strategies that made the Vince brand turnaround so successful,” he said.
At the Vince brand last quarter, net sales increased 108.5 percent to $67.2 million compared to the second quarter of fiscal 2020. Wholesale segment sales increased 105 percent to $35.2 million. Direct-to-consumer segment sales rose 112.5 percent to $32 million. Income from operations excluding unallocated corporate expenses was $15.6 million, compared to a loss of $1.1 million in the same period last year.
For Vince, the third and fourth quarters are bigger business periods than the second quarter. “Think of the brand’s core strengths – sweaters and outerwear,” which sell strongest in the second half of the year, Schwefel said in an interview
At the Rebecca Taylor and Parker brands combined, net sales in the second quarter increased 139.4 percent to $11.5 million compared to the second quarter of fiscal 2020. The loss from operations was $1.6 million, compared to a loss of $3.1 million in the same period last year.
The company ended the quarter with 78 company-operated Vince and Rebecca Taylor stores, a net increase of 10 stores since the second quarter of fiscal 2020.