Vince Holding 2026 Q3 Earnings Net Income Falls 37.3% Despite Revenue Beat

Vince Holding (VNCE) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with revenue rising 6.2% to $85.13 million, exceeding expectations. However, net income declined 37.3% year-over-year to $2.73 million, and the company reaffirmed its Q4 and full-year guidance.

Revenue

Vince Wholesale led the way with $52.02 million in revenue, driving the overall 6.2% year-over-year growth. The Direct-to-consumer (DTC) segment contributed $33.11 million, reflecting sustained demand for the brand’s premium offerings. Unallocated corporate expenses remained at $0, aligning with the company’s streamlined cost structure.

Earnings/Net Income

Earnings per share (EPS) fell 40% to $0.21 in 2026 Q3 from $0.35 in 2025 Q3, while net income dropped to $2.73 million, a 37.3% decline. The results underscored margin pressures despite revenue gains.

Price Action

The stock price surged 2.11% in the latest trading day, 21.07% for the week, and 29.64% month-to-date, reflecting investor optimism around the revenue beat and strategic initiatives.

Post-Earnings Price Action Review

The strategy of buying VNCE after a positive earnings report and holding for 30 days yielded no return, with the stock flat at 0.00% compared to the benchmark’s 66.02% gain. The approach showed a maximum drawdown and Sharpe ratio of 0.00%, indicating it failed to deliver risk-adjusted returns.

CEO Commentary

Brendan Hoffman, CEO of Vince Holding Corp., highlighted Q3 2025’s strong sales growth across all channels, exceeding top and bottom-line expectations. Strategic price increases, particularly in women’s collections, maintained unit stability despite 6% average pricing. DTC momentum stemmed from store renovations, e-commerce site enhancements with AI-generated video content, and a new dropship strategy driving triple-digit traffic growth. Tariff challenges were mitigated through supply chain adjustments and quality preservation. Reinvestments in marketing and new stores, including Nashville, Sacramento, and London, reinforced brand presence. Hoffman expressed optimism about leveraging digital and wholesale synergies to sustain growth.

Guidance

Guidance for Q4 2025 includes total net sales growth of 3-7%, with DTC growth outpacing. Adjusted operating income is projected at 2% of net sales, and adjusted EBITDA at 2-4%. Full-year 2025 net sales growth is expected at 2-3%, with adjusted operating income and EBITDA margins at 2-3% and 4-5%, respectively, despite $8-9 million in incremental tariff costs. Mitigation strategies aim to offset these costs, and Q4 DTC performance is anticipated to drive holiday sales momentum.

Additional News

Recent non-earnings developments include P180 acquiring a 65% stake in Vince Holding for $19.8 million, signaling strategic alignment. Yuji Okumura was appointed CFO, effective April 14, 2025, bringing expertise in financial restructuring. Additionally, Vince announced a $1 million share buyback program, reflecting confidence in capital allocation. These moves underscore the company’s focus on operational efficiency and shareholder value amid evolving market dynamics.