Vince Q2 sales up, OVO acquisition complete

Apparel group Vince Holding Corp. has reported an 11.7 percent increase in net sales to 81.8 million dollars for the second quarter ended August 1, 2026, compared to 73.2 million dollars in the same period last year.

Growth was registered across both primary sales channels, with the direct-to-consumer (D2C) segment rising 13.7 percent to 32.4 million dollars and wholesale revenue expanding 10.4 percent to 49.4 million dollars.

“We delivered strong results this quarter, with excellent growth across both our direct-to-consumer and wholesale channels, and this momentum gives us confidence to raise our full-year guidance,” said VNCE chief executive officer, Brendan Hoffman. “Importantly, the recent completion of the OVO acquisition marks a pivotal moment for our company.”

Strategic acquisition and expanded platform

Gross profit for the second quarter reached 49.8 million dollars, or 60.9 percent of net sales, compared to 36.9 million dollars, or 50.4 percent of net sales, in the second quarter of fiscal 2025. Gross margin performance was bolstered by a 10.4 million dollar benefit from an IEEPA tariff refund. Excluding the tariff refund benefit, the gross margin rate stood at 48.2 percent.

Net income stood at 10.6 million dollars, or 0.80 dollars per diluted share, compared to 12.1 million dollars, or 0.93 dollars per diluted share, in the previous year. On an adjusted basis, net income was 13.5 million dollars, or 1.02 dollars per diluted share.

The performance follows the company’s completion of the OVO acquisition on August 27, 2026. The company acquired the operating business of the streetwear label for a nominal cash purchase, alongside acquiring a 5 percent minority equity stake in OVO’s newly formed intellectual property entity from majority owner Authentic Brands Group (Authentic) for 6 million dollars. OVO generated nearly 50 million dollars in sales during calendar year 2025, and VNCE aims to scale brand sales to over 100 million dollars with low double-digit adjusted EBITDA margins by fiscal 2030.

At the end of the second quarter, Vince operated 53 stores.

Updated outlook

Following the performance, Vince has provided its outlook for the third quarter of fiscal 2026 and raised its full-year expectations, incorporating tariff refund benefits. The guidance excludes the newly acquired OVO operations.

For the third quarter of fiscal 2026, the company expects net sales for the Vince business to grow between 5 percent and 8 percent year-over-year (YoY), with adjusted operating income margin projected between 7.5 percent and 8.5 percent, and adjusted EBITDA margin expected between 8.5 percent and 9.5 percent.

For the full year fiscal 2026, Vince net sales are forecasted to increase between 8 percent and 10 percent YoY. Full-year adjusted operating margin is projected to reach between 7.5 percent and 8 percent, while adjusted EBITDA margin is expected to settle between 9 percent and 9.5 percent.