Vince Holding Corp. Common Stock

Vince Holding Corp. shares rose more than 36% in Monday trading as investors began factoring in the company's recent OVO acquisition. The New York City-based apparel company acquired OVO's operating business last month, including its stores, e-commerce platform, wholesale relationships, operating companies, assets and liabilities in Canada, the U.S., and the United Kingdom. As part of the transaction, Authentic Brands Group separately acquired the majority of OVO's intellectual property; Vince paid a nominal amount for the operating business and $6M for a 5% equity interest in the new IP-owning entity, with Authentic owning 51% and rapper Drake owning 44%. Vince also secured an exclusive 10-year license to use the OVO brand IP to manufacture and sell licensed apparel globally, paying royalties to Authentic, a structure expected to let Vince control the commercial execution of OVO without purchasing majority ownership of the brand itself. Shares were up 36.9% at 12:37 p.m. and traded as high as $7.28 earlier in the session.

Vince Holding Corp. raised its fiscal 2026 outlook for its Vince business to net sales growth of approximately 8% to 10%, with adjusted EBITDA of approximately 9% to 9.5% of net sales, while outlining a path for its newly acquired OVO brand to reach $100 million-plus in revenue by fiscal 2030. The raised guidance covers only the Vince business and excludes OVO, and also excludes transaction and integration costs related to the acquisition while including the benefit of tariff refunds, CFO Yuji Okumura said on the company's second-quarter fiscal 2026 earnings call. For the third quarter, Vince expects net sales to increase approximately 5% to 8% and adjusted EBITDA of approximately 8.5% to 9.5% of net sales. Total company net sales rose 11.7% to $81.8 million in the second quarter, including a $10.4 million benefit from tariff refunds, with net income of $10.6 million, or $0.80 per diluted share, and adjusted net income of $13.5 million, or $1.02 per diluted share. CEO Brendan Hoffman said the August 27 acquisition of the operating business of OVO is the next chapter of the company's multi-brand platform strategy beyond Vince in partnership with Authentic, and that the company plans to expand OVO's store and e-commerce footprint in the U.S., launch OVO wholesale through national department store relationships, and open 5 to 6 Vince stores in Canada. Okumura said OVO earnings net of transaction costs are expected to be neutral to the business in fiscal 2026 and accretive in fiscal 2027, with calendar 2026 sales relatively flat to calendar 2025 on a pro forma basis as the company reinvests in inventory and marketing.

Authentic Brands Group has acquired a 51 percent stake in the intellectual property of October's Very Own, or OVO, the lifestyle brand cofounded by Drake, with the rapper retaining 44 percent ownership and Vince Holding Corp. holding 5 percent. As part of the deal, Vince Holding will become OVO's core apparel and retail licensee, overseeing design, product development, and merchandising globally, and will acquire the operating business for OVO's retail stores. OVO, founded in 2008 by Drake, Oliver El-Khatib, and Noah "40" Shebib, operates eight stores in Canada, three in the U.S., and one in London, and is known for its black and gold palette and owl logo. The acquisition gives Vince Holding access to the global streetwear market, which is expected to reach nearly $500 billion in sales by 2028, and the company plans to open three U.S. stores next year and begin wholesaling to major retailers in 2027. Vince Holding now projects second-quarter net sales of about $81 million, at the high end of prior guidance, with adjusted operating income and EBITDA margins also expected at the high end of guidance.