Vince Holding Corp.

Total company net sales in the second quarter increased 11.7% to $81.8 million from $73.2 million a year ago. Gross profit was $49.8 million, or 60.9% of net sales, versus $36.9 million, or 50.4%, last year; that included a $10.4 million tariff refund benefit, and excluding it gross margin declined 290 basis points. SG&A was $36.3 million, or 44.3% of sales, compared with $25.8 million, or 35.2%, last year; excluding last year’s ERC benefit and this year’s $2.9 million in OVO transaction costs, SG&A leveraged by about 210 basis points. Operating income was $13.6 million versus $11.2 million last year, adjusted operating income was $16.4 million versus $5.5 million, net income was $10.6 million and diluted EPS was $0.80 versus $12.1 million and $0.93 last year, adjusted net income was $13.5 million and adjusted diluted EPS was $1.02, and adjusted EBITDA was $18 million versus $6.7 million last year. Long-term debt was $12.3 million and net inventory was $73.4 million. For the third quarter, Vince net sales are expected to increase approximately 5%-8% year over year, with adjusted operating income margin around 7.5%-8.5% and adjusted EBITDA margin around 8.5%-9.5%. For fiscal 2026, Vince net sales are expected to increase approximately 8%-10%, with adjusted operating income margin around 7.5%-8% and adjusted EBITDA margin around 9%-9.5%. OVO is expected to be roughly flat on a pro forma sales basis in calendar 2026 versus 2025 and earnings neutral for fiscal 2026, then accretive in fiscal 2027.

Brendan Hoffman sounded highly upbeat about both the core Vince business and the OVO acquisition. He said the quarter reflected continued momentum, especially in full-price selling, women’s and men’s categories, and customer growth, and emphasized that the business is executing consistently against plan. Strategically, he cast OVO as the start of a multi-brand platform, highlighting Vince’s operating capabilities, OVO’s cultural relevance, and opportunities to expand retail, wholesale, and e-commerce in the U.S. and Canada.

Yuji Okumura focused on the financial beat and the bridge from reported results to guidance. He cited 11.7% sales growth to $81.8 million, gross margin of 60.9% with a $10.4 million tariff refund benefit, SG&A of $36.3 million including $2.9 million of OVO transaction costs, and adjusted EBITDA of $18 million. He also noted $12.3 million of long-term debt, $73.4 million of inventory, and said the updated outlook now includes tariff refunds, excludes OVO transaction and integration costs, and assumes the $2.6 million inventory benefit flows through in the second half while being offset by higher freight and product costs.

Analysts pressed on how much men’s contributes to Vince and where category expansion could go; management said men’s is around 25% of the business and growing, while women’s is also growing, and future category extensions could include tailored clothing, handbags, baby, and home. Questions on OVO focused on Drake’s ongoing involvement, wholesale rollout timing, and synergies; Hoffman said Drake remains committed and involved in overall direction, and that wholesale is likely to launch around the summer/back half of next year, with broad enthusiasm from potential partners. He also said the company sees OVO as a potential blueprint for future Authentic-related platform deals, but that the immediate priority is successfully integrating and scaling OVO first. When asked about margin expansion past the $300 million revenue level, Hoffman declined to be more granular than guidance because of tariff, freight, and reinvestment noise.