Vince Holding Corp (NYSE:VNCE) stock fell 4.73% (As on June 18, 11:33:57 AM UTC-4, Source: Google Finance) after the company for the first quarter of FY25 has reported 2.1 percent decrease in net sales to $57.9 million for the first quarter ended May 3, compared to $59.2 million in the first quarter of fiscal 2024. The year-over-year decline was reportedly driven by store closures and remodels, which negatively impacted the retail store channel in the direct-to-consumer segment. Wholesale segment sales increased 0.1 percent to $30.3 million compared to the first quarter of fiscal 2024. Direct-to-consumer segment sales decreased 4.4 percent to $27.6 million compared to the first quarter of fiscal 2024. Loss from operations was $4.4 million compared to income from operations of $5.6 million in the Q1 period last year. Income from operations relating to the company’s reportable segments, Vince Wholesale and Vince Direct-to-Consumer, was $8.6 million, compared to $10.1 million in income from operations in the Q1 period last year. Net loss was $4.8 million or a loss of 37 cents per share, compared to net income of $4.4 million or EPS of 35 cents per share in the Q1 period last year.  Adjusted EBITDA was negative $3.0 million compared to negative $1.5 million in the Q1 period last year. The company ended the quarter with 58 company-operated Vince stores, a net decrease of four stores since the first quarter of fiscal 2024. At the end of the 2025 first quarter, total borrowings under the company’s debt agreements totaled $34.7 million and the company had $20.4 million of excess availability under its revolving credit facility. Net inventory at the end of the first quarter was $62.3 million compared to $56.7 million at the end of the first quarter of fiscal 2024.

Moreover, the gross profit was $29.2 million, or 50.3 percent of net sales, compared to gross profit of $29.9 million, or 50.6 percent of net sales, in the first quarter of fiscal 2024. The decrease in gross margin rate was said to be primarily driven by approximately 260 basis points related to higher freight and duty costs, approximately 120 basis points related to wholesale channel mix, and approximately 60 basis points due to higher distribution and handling costs.

For the second quarter, the company expects net sales to be approximately flat to down 3% compared to the prior year period. Operating Income as a percentage is expected to be of net sales to be approximately (1)% to 1%.