Reports Q2 Revenue up 11.7%, Raises Full Year FY26 Guidance

Vince Holding Corp. reported second-quarter fiscal 2026 net sales of $81.8 million, an 11.7% increase compared to $73.2 million in the same period last year. This growth was driven by increases in both direct-to-consumer sales, which rose 13.7% to $32.4 million, and wholesale segment sales, which increased 10.4% to $49.4 million. The company noted that a $10.4 million favorable impact from an IEEPA tariff refund contributed to its gross profit of $49.8 million, or 60.9% of net sales, compared to $36.9 million, or 50.4% of net sales, in the prior year period. Excluding this benefit, the gross margin rate would have been 48.2%.

Diluted earnings per share for the quarter were $0.80, a decrease from $0.93 in the second quarter of fiscal 2025. This was primarily influenced by an increase in selling, general, and administrative (SG&A) expenses, which rose to $36.3 million, or 44.3% of sales, from $25.8 million, or 35.2% of sales, in the prior year. The increase in SG&A expenses was attributed to not having the $5.6 million payroll tax credit benefit received last year, as well as $2.9 million in transaction costs related to the acquisition of October's Very Own (OVO).

The company also announced it completed the acquisition of the OVO operating business on August 27, 2026. This acquisition involved a nominal cash purchase for the operating business and a $6 million cash purchase for a 5% equity interest in OVO's intellectual property. While the financial results reported for Q2 FY26 do not include the OVO business, the company anticipates growing OVO sales to over $100 million and achieving Adjusted EBITDA margins in the low double-digit percentage range by fiscal 2030.

Looking ahead, Vince Holding Corp. raised its full-year fiscal 2026 net sales guidance for the Vince Business to an increase of approximately 8% to 10% compared to the prior year. This updated outlook incorporates the benefit of tariff refunds. The company expects Adjusted operating income as a percentage of net sales to be approximately 7.5% to 8.0% and Adjusted EBITDA as a percentage of net sales to be approximately 9.0% to 9.5% for the full year.