Vince Holding (NASDAQ:VNCE) shares jumped about 21% on Tuesday morning after the apparel retailer reported stronger-than-expected first quarter results and raised its full-year outlook.
The company posted an adjusted loss of $0.16 per share for the quarter ended May 2, better than a loss per share of $0.37 expected by Wall Street analysts.
Net sales rose 10.5% year over year to $64 million, exceeding forecasts of $60 million and increasing from $57.9 million in the prior-year quarter. The growth was driven by strength across both of the company's operating segments, with direct-to-consumer sales increasing 15.6% to $32 million and wholesale revenue rising 5.9% to $32.1 million.
Gross profit increased to $32.4 million from $29.2 million a year earlier, while gross margin improved slightly to 50.6% from 50.3%. The company attributed the margin expansion primarily to higher pricing and lower discounting, partially offset by the impact of higher tariffs.
Vince CEO Brendan Hoffman highlighted continued momentum across the business, pointing to double-digit growth in both new and reactivated customers and strength in full-price selling.
He also noted that performance has continued into the second quarter. “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,” Hoffman said.
Looking ahead, Vince expects second-quarter net sales to increase approximately 10% to 12% from the prior-year period, with adjusted EBITDA margin projected at 8% to 8.5%.
For fiscal 2026, the company raised its outlook and now expects net sales growth of approximately 7% to 8% year over year. It forecasts adjusted operating income margin of 4% to 4.5% and adjusted EBITDA margin of 5.5% to 6%.