Contemporary brand Vince, buoyed by continued acceptance of its easy, California-influenced styling, reported solid sales gains and reduced losses for the first quarter of 2026.
“Every channel outperformed,” Brendan Hoffman, chief executive officer, told WWD. “The product is really resonating. Shoppers are continuing to see value even with price changes.” Vince in the back half of last year raised prices 10 percent, but it was done “surgically, not across the board,” Hoffman said.
Total sales for the quarter ended May 2 increased 10.5 percent to $64 million, compared to $57.9 million in the first quarter of fiscal 2025. The year-over-year increase was driven by a 15.6 percent rise in the direct-to-consumer segment and a 5.9 percent increase in the wholesale segment.
The first-quarter loss from operations was $2.6 million compared to a loss from operations of $4.4 million in the same period last year. The net loss was $2.1 million, or 16 cents a share, compared to a net loss of $4.8 million, or 37 cents a share, in the year-ago period.
Gross profit was $32.4 million, or 50.6 percent of net sales, compared to gross profit of $29.2 million, or 50.3 percent of net sales, in the first quarter of fiscal 2025. The increase in the margin rate was primarily driven by about 130 basis points due to higher pricing and 100 basis points due to lower discounting, largely offset by the unfavorable impact of higher tariffs.
“The momentum has continued into Q2. Contemporary is clearly having a moment,” Hoffman said. “Nothing in the business says it’s slowing down. Some consumers are trading down from luxury.”
Hoffman also said Vince has benefited by having a stable team that’s been together for seven years and has continued to evolve the product.
Vince elevated its outlook. Net sales for 2026 are seen increasing to about $320 million, about 7 to 8 percent more than last year’s $300 million. Previously, the company anticipated 3 to 6 percent gains for this year.
Adjusted operating income as a percentage of net sales is seen reaching about 4 to 4.5 percent, which compares to the previous forecast of 3.5 to 4 percent. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) as a percentage of net sales is projected to be about 5.5 to 6 percent, compared to the previous forecast of 5 to 5.5 percent.
For the second quarter, net sales are projected to increase about 10 to 12 percent compared to the prior-year period. Adjusted operating income as a percentage of net sales is seen at about 6.5 to 7 percent, and adjusted EBITDA, as a percentage of net sales, is seen at about 8 to 8.5 percent.
The company’s outlook does not consider potential tariff refunds resulting from the Supreme Court’s decision on tariffs.
“For the year, our guidance shows us being nicely profitable,” Hoffman said, noting that losses are typical in the first quarter, but business recovers in the back half, particularly during the busy holiday selling season.
“In women’s, our strongest category was woven tops, including solid blouses, prints and new cotton woven programs,” Hoffman said. “We also saw strength in pants through the expansion of our core pant fabrications in additional colors and novelty prints. Dresses gained momentum at the end of Q1, driven by knit dresses and elevated event dressing in printed silks.”
In men’s, Hoffman cited novelty textured knits and polos, and linen categories. “Head-to-toe dressing has elevated our average transaction values, with expanded bottoms offerings driving higher sales penetration. Our men’s business remains a significant growth opportunity.”
Vince currently operates 54 stores, four less than a year ago. Hoffman said he is in “advanced discussions” with landlords to return to certain locations that were vacated not long ago. He didn’t specify the sites.
In other results, selling, general, and administrative expenses were $35 million, or 54.7 percent of sales, compared to $33.6 million, or 58 percent of sales, in the first quarter of fiscal 2025. The increase in SG&A dollars was primarily driven by higher benefit costs as well as marketing and advertising costs.
Income tax benefit was 16 cents a share.
In his prepared statement, Hoffman said, “We delivered strong first-quarter results that demonstrate the powerful momentum we’ve built is not only sustained but accelerating.…Our strategic investments in customer experience are paying off, fueling double-digit growth in both new and reactivated customers and supporting healthy full-price selling.
“We’re executing with discipline and precision across our business,” Hoffman added. “The strength we’ve established has carried into the second quarter, reinforcing my confidence in our trajectory. With our strategic foundation firmly in place and a talented team driving product and execution, we are raising our full-year guidance and remain focused on driving sustained profitable growth and creating long-term shareholder value.”
A look from Vince.
