Vince to streamline operations with $30 million cost-cutting plan over next three years

Vince Holding Corp. announced on Tuesday a new transformation program focused on streamlining operation, in a bid to cut costs by more than $30 million over the next three years.

The New York-based fashion brand said 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 optimizing breadth and depth of markdowns; and enhancing efficiencies within store operations, corporate overhead and third-party spend.

The transformation efforts are expected to generate over $30 million in savings over the next three years, with efforts to be led by Heather Wilberger, Vince’s chief transformation and information officer, who reports directly to ​Jack Schwefel, chief executive officer of Vince.

The announcement comes several months after New York brand management firm Authentic Brands group acquired Vince in April this year.

“This year has been a year of significant change for our organization as we continue to position Vince for long-term success,” said Schwefel.

“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 organization and drive efficiencies across our operations. We believe the transformative actions we are implementing along with our enhanced focus on our strategic growth initiatives position us well to deliver sustainable, profitable growth and drive value for all of our stakeholders.”

Coinciding with the news, Vince said it expects third-quarter net sales of $81 million to $83 million, and income from operations of $0 million to $2 million for the three months.