In comparison to the second quarter of fiscal 2021, when Vince Holding Corp’s net sales were $78.7 million, they increased 13.4% to $89.2 million in the second quarter of fiscal 2022 (FY22), reflecting a 20.5% increase in sales for the Vince brand and a combined 27.9% decline in sales for Rebecca Taylor and Parker.
The company’s gross profit was $36.4 million, or 40.8% of net sales, down from the second quarter of fiscal 2021, when it was $35.4 million, or 45% of net sales. The company stated in a press release that the decline in the gross margin rate was primarily brought on by unfavourable year-over-year adjustments to inventory reserves, higher product and freight costs, and an increase in promotional activity, which were only partially offset by favourable leveraging of distribution and other overhead costs.
In comparison to the second quarter of fiscal 2021, when Vince Holding Corp.’s net sales were $78.7 million, they increased 13.4% to $89.2 million in the second quarter of fiscal 2022. This was due to a 20.5% increase in sales for the Vince brand and a combined 27.9% decline in sales for Rebecca Taylor and Parker.
Comparatively to the second quarter of fiscal 2021, when they were $32.7 million or 41.6% of sales, selling, general, and administrative (SG&A) costs were $39 million, or 43.7 percent of sales. The rise in SG&A dollars was principally brought on by higher rent, more consultancy and other third-party expenditures, as well as greater payroll and compensation expenses.
As clients returned to more routine activities and occasions and began to choose the variety of our upscale, high-quality selection, Vince experienced growth during the second quarter in both its women’s and men’s divisions. Even though we are working in a difficult economic climate where profitability is under more pressure, we are nevertheless committed to carrying out our strategic plans for Vince, including the imminent relaunch of the brand’s e-commerce site, according to Jack Schwefel, chief executive officer.
“Given the heightened challenges that Rebecca Taylor, in particular, has suffered from a variety of macroeconomic and pandemic-related concerns in the sector over the past two years, we have made the tough choice to quit our Rebecca Taylor company,” the statement reads. The company will be able to concentrate on Vince’s core operations and our entire financial base by closing Rebecca Taylor, Schwefel added.