Vince Holdings announced on Tuesday sales fell 4.7% to $80.2 million in the third quarter, as the U.S. luxury firm clocked contractions across its direct retail and wholesale channels.

The New York-based company said it logged a 8.3% decrease in Vince brand direct-to-consumer sales and a 2.2% decrease in Vince brand wholesale sales, respectively.

Despite the sales declines, net income for the quarter was $4.3 million or $0.34 per diluted share, compared to net income of $1.0 million or $0.08 per share in the same period last year.

“Our ongoing focus on driving a healthier, full-price business and executing on our transformation plan continues to yield strong results, as evidenced by the significant gross margin expansion and improved profitability we delivered in the third quarter compared to the prior year,” ​said David Stefko, interim chief executive officer of Vince.

“While revenue fell slightly short of our expectations, primarily due to lower in-season reorders in our international wholesale business and lower than expected outlet channel sales, the underlying strength of the Vince brand continues to resonate with customers. As we look ahead, we expect to continue to execute a healthy full price business across all channels, and are very encouraged by the results we have driven thus far in the fourth quarter. While we remain prudent with our outlook given the shortened holiday selling season and the ongoing uncertainty around the consumer, we believe we are well positioned to deliver on our objectives for this year.”

In October last year, Vince announced its ‘Transformation Program’ focused on driving profitability through an improved gross margin profile and an optimized expense structure. The program is expected to result in over $30 million in savings over the next three years, including approximately $10 million of savings in fiscal 2024.