Vince Reports Q2 Gains, Raises Outlook

Vince Reports Q2 Gains, Raises Outlook

David Moin

Thu, September 10, 2026 at 3:17 PM GMT+3 4 min read

Vince, continuing to see its California-inspired contemporary styles resonating with consumers, reported a robust second quarter with gains across all channels and a lift from tariff refunds.

For the three months ended Aug. 1, net sales increased 11.7 percent to $81.8 million compared with $73.2 million in the year-ago quarter. The year-over-year increase was driven by a 13.7 percent increase in the direct-to-consumer segment and a 10.4 percent increase in wholesaling.

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Income from operations was $13.6 million compared to income from operations of $11.2 million in the same period last year. Adjusted income from operations, which includes the benefit from tariff refunds in Q2 was $16.4 million compared to $5.5 million in the same period last year.

"We had a great first quarter and business improved from there," Brendan Hoffman, chief executive officer of Vince, told WWD. "Our business continues to be strong across all of our channels. Our product is resonating with customers. Contemporary continues to be a sweet spot. A lot of luxury customers are trading down."

The company raised its sales earnings per share outlook for the year. "The tariff impact raised it quite a bit, even without that, we raised it. Everything for Vince lines up for having a great back half of the year and that includes a great holiday." Hoffman said the collection has been enhanced with festive looks for holiday parties.

There have been some price increases in leather and outerwear. "We see elasticity in our pricing," Hoffman said. "We continue to stretch our pricing and not get resistance. The customer still sees value in the product we offer."

Hoffman expects to announce a few new Vince store locations in the near future. Currently, Vince has 53 doors.

Last month, Authentic Brands Group, the global brand and entertainment platform, acquired a 51 percent stake in the intellectual property of October's Very Own, or OVO, the lifestyle brand cofounded by Drake. The rapper will retain 44 percent ownership, while Vince owns 5 percent.

As part of the transaction, Vince becomes OVO's core apparel and retail licensee, overseeing design, product development and merchandising globally for the brand, and acquiring the operating business for OVO's retail stores.

"OVO has a very limited presence in the U.S. So we're going to open up three stores over the next 12 months. We really have an open map to figure out where those stores should be. We're actively working on that."

In addition, Hoffman said Vince is in negotiations to find a retail partner in the U.S. for wholesaling OVO, which currently doesn't wholesale in the U.S. "That's a big lever for us, and then we think we can accelerate their e-commerce business in the U.S. as well as use them to open up some stores in Vince. I think we can open up to five or six Vince stores in Canada, now that we have an entity there." Vince does not have any stores in Canada. OVO is based in Toronto.

OVO generated about $50 million in sales last year. "We'll do over $100 million by 2030," Hoffman predicted. "Obviously, we're excited to be partnering with Drake. He's just a cultural phenomenon. He has 140 million Instagram followers. I had dinner with him a few weeks ago, and he's very engaged" in working together.

Asked if he thinks additional brands into the Vince business, Hoffman said, "Let's get this one (OVO) done first, but it would be the plan to make Vince a multi-brand platform."

Hoffman said Q2 saw strong sales growth in the women's and men's businesses, driven by full-price transactions across key categories including woven tops, light-weight outerwear, and seasonal knits and sweaters. Top sellers in women's included core pant styles like the Niki mid-rise flare pant, and novelty pieces like the funnel-neck jacket. For men's, top sellers included short-sleeve polos in elevated fabrics and the shirt jacket.

In his prepared statement, Hoffman said "the recent completion of the OVO acquisition marks a pivotal moment for our company. We are entering the streetwear market through a brand with deep cultural roots and an authentic customer connection, and we're bringing to it the operating discipline and infrastructure that have driven Vince's turnaround."

In other Q2 results at Vince, gross profit was $49.8 million, or 60.9 percent of net sales, compared to gross profit of $36.9 million, or 50.4 percent of net sales, in the year-ago quarter. The gross margin gain included a favorable impact of $10.4 million related to tariff refunds, which offset higher product and freight costs. The gross margin rate, excluding the benefit of the tariff refund, was 48.2 percent and in line with company expectations.

Net income was $10.6 million, or 80 cents per diluted share compared to net income of $12.1 million or 93 cents per diluted share in the year-ago period.

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