We are reiterating our Buy rating and raising our projections and price target for Vince Holdings after the company beat 1QFY26 (April) expectations and raised FY26 guidance even further, as momentum has remained very strong into 2Q. We believe, with product flow returning to normal, the company continuing to offer compelling fashion and expanding the product offerings, and a wider category selection, Vince is ideally positioned to drive upside. Further, with a focus on core affluent customers who have remained economic winners and who remain full price buyers for the great looks and utility Vince offers, we believe the company is poised, even after the 1Q beat and FY26 raise, to drive further upside. Our new price target of $9 (from $7) translates to 12.4X our FY27 EPS; we believe the Vince business model deserves a premium multiple.
