Vince announces transformation plan to boost profitability

Vince Holding Corp. has announced a transformation program focused on driving enhanced profitability through an improved gross margin profile and optimised expense structure.

The company said that the transformation efforts are expected to generate over 30 million dollars in savings over the next three years and the efforts will be led by Heather Wilberger, Vince’s chief transformation and information officer, who reports directly to Jack Schwefel, the company’s CEO.

For the third quarter, the company expects net sales of 81 million to 83 million dollars reflecting sequential improvement compared to the second quarter and gross margin expansion.

Commenting on the transformation plan, Schwefel said in a statement: “Our transaction with Authentic Brands Group provided increased financial flexibility as we fortified our balance sheet, and resulted in increased royalty expenses which we plan to offset with our transformation program.”

“Following a thorough review of our business and cost structure, we have identified opportunities to further streamline our organisation and drive efficiencies across our operations,” Schwefel added.

The company further said that the transformation program is focused on improving the company’s gross margin profile and driving cost efficiencies through streamlining manufacturing and production operations; reducing promotional activity and optimising breadth and depth of markdowns; and enhancing efficiencies within store operations, corporate overhead and third-party spend.