VNCE - Earnings call transcript Q2 2022

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Operator

Good evening, everyone. Thank you for joining today's Vince Holding Corp Second Quarter 2022 Earnings Conference Call. My name is [Don Pam] (ph) and I’ll be the operator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. [Operator Instructions] I would now like to pass the conference over to our host, Ms. Holding Vince with Levy Corp. Amy Ms. is Amy, yours. the floor now

Amy Levy

Chief everyone. Vince Results Chief Holding you Jack Call. and Second Financial to afternoon, good Schwefel, is today XXXX Thank Officer. Corp's Dave Welcome Quarter the call Officer, Executive and Hosting Stefko, Conference Fiscal

company this available call for subject actual company Before begin, the to filings, obligation management to in are uncertainties those uncertainties take could cause assume on the risks to will and remind not constitute remain on differ should forward-looking update any that certain operative your to statements undertakes questions you no which information and and later Those we as website. may permits. call. that remarks, statements, the results long are the prepared from press on discussed me After today's at the Investors SEC and will during that made in let statements risks call the expect. which are that available time company's made the a described as be release company's time

Now, the I'll call over to turn Jack.

Jack Schwefel

Amy, and afternoon a performance. everyone on for thank joining for quarter us our this second you discussion you, Thank

to profitability to our allow the on of the Before and will continued decision forward. of in challenging made Rebecca and begin, after have decision press macro Taylor all brand This us careful you I exit the saw going light our as difficult growth in the environment today, business. release of the focus consideration Vince resources we

our over financial Dave in will and focus will turning to review the my detail. provide call Given primarily to discussion today before this an more on update initiatives Vince I strategic results our on update,

a to performance Vince. review now of at Turning our

and drove levels. During wholesale both growth both XXXX consumer XXXX to the sales and above channels our direct quarter,

Anniversary led from by as event, our performance at results consumer retail sales increase Nordstrom benefiting in the channel, strength the strong and the into our expected channel. Our wholesale direct in as to were off-price stores well

resonate women our customers away assortment to casual skirts demand saw In as well have quarter we both silhouettes and style our as and pattern in with gravitated continue for as as color, activities our During we normalized lounge tops. Vince. men returned the and have from to strong dresses and new women's, more into a reception and dressier great and to pants,

this and While our back pieces. categories breadth year, and in our scaled we saw more depth exclusives the strength of swimmer modest we

increased rate the We are also and margin turns for line we this delivered pleased year. with higher the

were momentum particular, addition, Avenue were pleased summer the sizing the fifth like sizing during at in women's In In we we period. saw the and our stores. the men's store are exploring opportunities inclusive our very saw strength quarter we In with for to and we program business positive men's, more inclusive shirts. offer we and key response items last event in very Cabana encouraged linen our our by in we again saw essential

aligning similarly way, categories, evergreen customers such our opportunity we as to strong men's areas to continue dressier such forward this going see [indiscernible]. in We wear as growth in are esthetic seeing now women's Vince line a in buy and for

leather our opportunity see gloves, assortment, This both for within are and accessories (ph). and [Amica] expanded of launch licensing scarfs, fall, ahead in be color items Looking men will later stores month in includes towards we significant new a excited we upcoming ways. mittens other which a with for seasonal cold and range partner this weather women

fall men's strong assortments. will holiday our and styles this complement already we We gifting up are very existing which our to and excited as for women's the line and adds seasons, enter

Ukrainian accessories proud refugees in continue $XX,XXX also offer to raised to since launch supporting have of June. the selection and early with are Amica, a We partnership almost our

retail performance, continued migrate have see Turning to our e-commerce back to several and traffic to quarters sales following growth. of stores we store COVID driven

As and June strength Park are Merrick May, in our store Boston both markets. in recall opened location and you Seaport relocated our in may seeing we

quarter In the relocate addition, of closed two during stores plans year. the the we two remodel have locations store, and one before to end

customer capabilities. comparison the our to has back shopping which As year-over-year of e-commerce impacted highlights behaviors our omnichannel importance of stores, migrated growing in been

now and journey improved particularly to With streamlined highlighted will our customer long-term we to navigation of page the to data excited the we for continue checkout with enhanced a of benefits personalization site are mobile the new with and key will this alongside our a faster Along also redesign our website. customers. view product capabilities are for CDP. will pages. We we forward a customers strategy. including experience that scalable to mind, for by Vince With part have improvements, approach our immediate upcoming along we personalization, highlight. our The and have, customer e-commerce platform CDP enhancements loads we marketing relaunch filters or also process updated site, first continue new as these marketing relaunch growth in which experience Through an and bring our benefit applications believe looking and its enhanced targeted category from disciplined our

We we these was, Turning top as performance. the sale. year's of very exciting results, I the record proud on this Anniversary last at of men's Most Nordstrom performance strong mentioned, now both in saw were women's particularly channel. especially year's wholesale to and

approach anniversary to campaign. To be we very partners. in with see pleased launching to While we experience to closely Vince the cautious wholesale XXth work end, Later that we quarter. challenges during I due continue celebrating ongoing did [indiscernible] continue did with to our fall reorders Vince’s delays period, the our supply love chain we were this to and hashtag, more will

understated tried our collections favorites, milestone As joining this the brand showcase partners collections. defines tailored of celebration event will Vince’s select part capsule of wholesale heritage be true will luxury. that with These and

campaign qualities craftsmanship, brand, be the media essentials highlighting quality will classic we on and celebrating Vince heritage. wardrobe particular the with the while and of on items, our social addition, In emphasis three

We continue we media engagement to our channels. seeing are pleased with social across the increased be

While majority post directed saw women, this towards with our the performance legs campaigns Cruise vintage highlighting thrilled of were we this year's summer Top jeans Maverick. straight our Gun at wear we the one in are influencer wash Tom blockbuster

but excited not well and this campaign ahead, and Looking driving gifting we which holiday anniversary year. web for across as social on later will our engagement highlight continue will and our our increased to focus pages only campaign, XXth are occasion

Korea, continues sweaters and tops, particular demand in international Finally, in our business supported saw by to growth. show knits. We strength

pleased for progress environment. Shanghai also United work for opening continue our and our of and very we excited to a are pilot In dynamic we opening In are shop and closing, in in in store We [indiscernible] webs later planned I to the forward Kingdom to in operate with at of China, October. shop our the their of the thank challenging launch and look dedication. all want And September. hard for employees our

of Dave. focused I initiatives As best on we look will going for we With to growth Vince ahead, over turn position that, making our to progress across it forward. profitable are all

Dave Stefko

Jack. Thanks,

Total navigate $XX.X while Our we increased to second in second business, to company growth of sales driven XX.X% that compared quarter quarter to environment our results quarter second were the has challenging net Vince macro a million to $XX.X fiscal continued by created for in XXXX. million profitability. headwinds the

Vince increased prior the in brand, year quarter sales million the same $XX.X second net to period. For consolidated compared to XX.X% $XX.X million

or the result million goodwill of was primarily quarter higher of in $X.X net year-over-year gross of expense net as expense sales consulting sales an $X.X trade year. partially an Parker primarily assets Rebecca $XX associated period as costs and increased an of sales was exceeded Income increase X.X% sales. the and growth XXX was second in Taylor last well payroll the segment temporarily costs, and compares we adjustments a consumer in by in period deferred the for year-over-year sales Vince quarter tax compared same charge and the sales was in of unfavorable to impairment increase with to basis loss COVID primarily year. second of the stores. stores. of but sales other the a to to $X.X a in XX.X% includes fiscal other as general lived increased or The $XX.X million operating XXXX to in The million second Taylor rate year. the XX.X% indefinite net of certain XX. for the property lived net direct our and and due purposes. inventory quarter to to XXXX our combined margin was million in to of million decrease XX.X% compensation $XX.X activity, point profit of XX.X% $XX.X second ongoing was $X.X by amortization in retail Vince driven offset as to the fiscal driven year. net for have period consumer storage of of the third-party restored Our tax and and and with Operating associated expense or as not last dollars freight charge and $X.X by to was as Wholesale reserves, segment for XX% second impact by levels. of name the compared compared driven income Selling, tax non-cash overhead intangible our as wholesale direct The partially and quarter in quarter book product by XXXX by year channel, quarter to second Taylor depressed a quarter of tax indefinite The increase higher created result Gross promotional higher of loss distribution rent SG&A expenses year. certain increase administrative million second business, expenses $X.X second This costs. million million expense, million million leveraging the Rebecca was impairment levels. quarter in or $X.X the XX.X% that for operating compared This net the quarter expense new to the annual and decreased QX in stores. XXXX favorable million in increased offset The were last last last prior our retail for This Rebecca $XX.X sales same to due sales compared million In exceeded same lower equipment

loss. for rate the fiscal of the July in applying Taylor As for of and of includes for effective pre-tax year the months a results the second loss of the XX Rebecca share longer per was mainly of the review year, impact million to year. of for $X.XX the July compared quarter provision per the ended we the in therefore impairment fiscal $X.X quarter, the to income three six net previously month loss which due XX, impact anticipate loss Net share or estimated $X.XX reflects annual $X.X second tax no company's ordinary $XX tax the XXXX a decline million the loss last I or million for charges

We borrowings the now with sheet, our agreements million. revolving $XX.X quarter ended the of balance availability Moving debt under under our credit facility. to totaled million $XXX.X

second $XX.X net year. Moving of end the compared second to the end last million to at inventory at the million quarter of was inventory, $XXX.X as the quarter

and increase previously our to last replenishment calendar be a were this temporary to a port extended well due our as year. to assortments, higher and levels levels a inventory orders products The we related fall year. anticipated discussed, investment Shanghai higher closure the to pre-fall strategic ending our we shutdowns factory elevated impacted of also QX decision in As earlier shortfall times by and inventory following shipping as

partners we also with transportation and raw current approach backdrop. demand to experienced more ordering, have saw inflation cost cautious In related wholesale taken a product a macro the who and addition, materials given lower-than-expected to increased our

my an to to and early we we time. not actions months down at complete today down expected provide wind respect with uncertainties said, strategies executing this focused that Vince is a risks in to drive of our business, to business, impact Taylor and subject navigate our With back stage Rebecca the will our while take consumer several position our year, comments we we that environment. half and is Given various successfully ability down. remain are to look the concludes to is could complete wind growth the to second volatile The guidance on regarding our the in announced continuing the to quarter. at to winding This as

Operator? your questions. take now will We

Operator

I so to There at this Instructions] questions [Operator call team sir. are for you, closing registered over like any to would back remarks. time, the Thank no pass management

Jack Schwefel

third call. to Thank QX later This sharing Vince forward Have attending. in evening. We a look performance XXXX the December. our you for good concludes earnings quarter

Operator

conclude second And your Corp Vince conference with for Holding participation. you earnings today's we Thank will that quarter call. XXXX

disconnect your now may line. You

Vince Holding (VNCE) 12 Sep 222022 Q2 Earnings call transcript