<\/p>\n
A mall retailer consumers describe as an “entry-level” luxury brand that features sophisticated, minimalist staples, has quietly closed five stores. <\/p>\n
This year, a number of mall retailers have chosen not to renew their mall leases as they adapt to consumers’ shifting habits. The closures, however, come at a time when foot traffic across all three mall formats is growing year over year, according to recent data from Placer.ai. <\/p>\n
Nonetheless, foot traffic and tenant occupancy vary widely by mall tiers, which is why a number of mall staples have been moving to open-air shopping centers. Others are heavily investing in their online presence, as consumers make more frequent but shorter and more mission-driven trips to malls. <\/p>\n
Under my retail coverage for TheStreet, I recently reported on how Journeys’ parent company closed 25 stores last quarter to shift its footprint away from lower-traffic traditional malls and toward off-mall locations. Then, there’s Vera Bradley, which cut its traditional mall footprint by more than 43%. <\/p>\n
Now, the parent company of a contemporary luxury brand Vince, popular for elevated, understated basics, such as cashmere sweaters, leather leggings, and silk blouses for “everyday effortless style,” is joining the group. <\/p>\n
Vince quietly closes 5 stores in 12 months <\/p>\n
For over two decades, Vince built its reputation as the holy grail for low-key quiet luxury before that was even a buzzword. The brand continues to draw shoppers interested in a minimalist wardrobe and timeless, high-end pieces without loud logos. <\/p>\n
Vince Holding recently reported its second quarter of fiscal 2026 results. Total net sales were $81.8 million, up 11.7% compared to the same period in 2025. <\/p>\n
Vince Holding Q2 fiscal 2026 earnings and operational highlights: <\/p>\n
Revenue growth: Total net sales increased to $81.8 million from $73.2 million in the prior-year quarter.<\/p>\n
Channel strength: Direct-to-consumer (DTC) sales rose 13.7%, while wholesale revenue increased 10.4%.<\/p>\n
Profitability surge: Adjusted EBITDA jumped to $18.0 million compared to $6.7 million in the same period last year.<\/p>\n
Strategic acquisition: The company acquired the operating business of OVO (the streetwear brand co-founded by Drake) to expand beyond the Vince brand and transition to a “multi-brand platform.”<\/p>\n
Store count: Ended the quarter with 53 company-operated Vince stores.Source: SEC.gov – Q2 2026 Earnings Release<\/p>\n
Vince Holding confirmed it has closed three full-price retail stores and two outlet locations over the last 12 months. <\/p>\n
Vince quietly closes five stores in 12 months. <\/p>\n
Mireya Acierto \/ Getty Images<\/p>\n
Why Vince’s store closures go far beyond these 5 locations <\/p>\n
Vince Holding’s official reports reveal that the retailer has closed 16 net stores since reaching a post-pandemic peak of 68 locations in early 2022.<\/p>\n
Shrinking from 68 stores (51 full-price, 18 outlets) down to 53 locations today (41 full-price, 12 outlets) represents a 22% reduction in its core brick-and-mortar footprint.<\/p>\n
This confirms that the five store shutterings over the past 12 months are part of a deliberate multi-year strategy to trim excess real estate capacity, reduce fixed overhead, and lean into wholesale and direct-to-consumer e-commerce.<\/p>\n
The management commentary suggests that right-sizing the store fleet has contributed to higher profitability. Instead of sales decline due to having fewer stores, the remaining fleet and e-commerce channels are operating highly efficiently. <\/p>\n
“We delivered sales growth of nearly 12% with strength across both our direct-to-consumer and wholesale channels and delivered adjusted EBITDA of $18 million, including the benefits of tariff refunds,” Vince Holding CEO Brendan Hoffman said during the earnings call. <\/p>\n
Retail expert and RTM Nexus CEO Dominick Miserandino agrees that the number of Vince store closures is less important than its sales growth with a reduced footprint.<\/p>\n
“That means the remaining stores, e-commerce and wholesale are carrying more of the business. A smaller footprint can be a healthier footprint if you’re cutting locations that weren’t producing enough return,” Miserandino told TheStreet.<\/p>\n
Vince Holding said profits more than doubled last quarter, but most of that gain came from a one-time $10.4 million tariff refund, not from the business actually improving as much, according to the company’s SEC filings. With that accounted, gross profit margin was really 48.2%, not the 60.9% the company highlighted.<\/p>\n
The comparison is also distorted because last year’s quarter got its own one-time boost, a $5.6 million tax credit that lowered expenses, the SEC filing noted. Once both one-time boosts are removed, the underlying profit grew only slightly. <\/p>\n
However, earlier this year, Vince reported a comparable direct-to-consumer sales surge of nearly 18% and continued double-digit growth last quarter, even after closing five stores.<\/p>\n
Vince’s operating expenses also shrank as a percentage of total revenue last quarter, proving that closing unproductive stores helped management achieve “leverage of fixed costs on the higher sales.”<\/p>\n
Vince doesn’t need discounts, despite consumers spending less on fashion <\/p>\n
Vince’s earnings results confirm that demand for its offering is still there, even though a McKinsey analysis projected that the global fashion industry will once again post low single-digit growth in 2026. <\/p>\n
Moreover, “growth in fashion and luxury retail is expected to remain low around the world as macroeconomic uncertainty persists,” McKinsey wrote in its November 2025 State of Fashion research. <\/p>\n
Amid this lack of consumer willingness to spend on fashion, Vince’s latest results reveal that the brand is still managing to attract consumers.<\/p>\n
“Highlights from the quarter include strong sales growth in both our women’s and men’s businesses, driven by full-price transactions across key categories, including woven tops, lightweight outerwear, and seasonal knits and sweaters,” Hoffman stated during the Q2 earnings call.<\/p>\n
Vince management is pointing to full-price transactions, suggesting that they don’t need to discount products or rely on massive physical-store clearance sales to drive revenue. Closing underperforming stores allowed Vince to tighten inventory, protect its premium pricing, and increase sales to full-price buyers both online and in their surviving top-tier locations.<\/p>\n
Vince is also leaning into its premier wholesale department store network, including department stores such as Nordstrom, Saks Fifth Avenue, and Bloomingdale’s, instead of carrying the capital risk of long-term real estate leases. <\/p>\n
“Our summer and pre-fall collections resonated particularly well, and that momentum extended into the Nordstrom anniversary event. Underpinning it all is continued growth in our full-price customer base across all channels, which gives us confidence in the durability of the business,” Hoffman added. <\/p>\n
What’s next for Vince? Building on Drake deal and creating a multi-brand platform <\/p>\n
In late August 2026, Vince completed its acquisition of the operating business of OVO, the streetwear brand co-founded by Drake, in partnership with Authentic Brands Group (ABG). <\/p>\n
Management plans to leverage Vince’s existing supply chain and department store relationships to scale OVO’s physical footprint and wholesale presence. <\/p>\n
Store openings: Vince plans to open about three U.S. OVO retail stores in fiscal 2027, while expanding the brand’s direct-to-consumer e-commerce platform.<\/p>\n
Wholesale rollout: Vince will launch OVO into U.S. wholesale department stores in the second half of fiscal 2027 using its existing relationships with luxury retailers.<\/p>\n
Revenue goals: Management expects OVO (which generated nearly $50 million in calendar 2025 sales) to remain earnings-neutral in fiscal 2026, become accretive in fiscal 2027, and scale significantly over the long term.<\/p>\n
The acquisition gives Vince the operational setup to open physical Vince stores, wholesale accounts, and localized e-commerce in Canada. <\/p>\n
“This transaction also deepens our relationship with Authentic Brands Group, a partner supporting our multi-brand platform strategy to broaden our portfolio of brands, business models, and distribution channels, and drive long-term value for all stakeholders,” stated Hoffman. <\/p>\n
Related: After nearly 50 years, convenience store chain sells every location<\/p>\n
#Popular #mall #retailer #quietly #closes #stores #bets #Drake<\/p>\n","protected":false},"excerpt":{"rendered":"
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