Vince Holding (VNCE) 30 Apr 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Vince Q4 2020 Earnings Conference Call. [Operator Instructions] Thank you. I would now turn the conference over to Amy Levy.

You may begin.

Thank you, and good afternoon, everyone. Corp.'s quarter Holding conference XXXX Vince call. to preliminary fiscal fourth results Welcome today Chief Jack David the is Hosting call Schwefel, Financial Stefko, Officer. Executive Chief and Officer;

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

company press in measures them on financial available these questions as company's After most release with measures website in today’s long conformity discussion, addition, prepared comparable to Discussion time In these presenting basis. the historical and investors.vince.com. reconciliations GAAP its of related results will are information available on schedules, into your adjusted of in and preliminary of the at included are the management permits. remarks, the to which take investors GAAP be their is section an and and non-GAAP as for

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

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liquidity we structure in also potential remain while and priority will areas. time, remain this a critical any During diligent limiting will to our investments expense

look I'm work will the the and With rollout progress the on the the next business to on over forward team on very confidence additional Over continues. to to shareholder the enhancing of Dave. capitalize will entire vaccine growing opportunities profitability look providing Overall, our I details you excited strategy over with term. call. to ensure I believe ahead, our in turn this near number it our on I initial as a you long we and consumer forward closely are value update and that term, to there are with we go

Jack. Thanks,

results I are we that preliminary. Before would like I reporting the to today discuss financials, point the are out

of I the in per related taxes, provision increasing analysis of As effect tax non-cash on. non-cash, from implication finalizing item loss, income for share share income our valuation We like would this per a the Cares $X.XX non-income and loss assets fourth stress are net the on deferred quarter. is the operations to the and will item. to of of $X.XX our Act we range believe a for this an tax the item deferred they're and have

vendors with our during the landlords hard We Looking for to their liquidity, wholesale protect across and swift navigated XXXX, we truly this appreciate our grateful. I measures extremely which along teams I the expenses, to thank partnership. commitment for of back pandemic closely work your organization reduce Most and want on we and all, channel am work partners, business. successfully and time, our through our manage with

about with we forward we I to brands look luxury. by are the ahead, and pandemic of as the strength from brands. we capitalize future on our the working our look emerge the as a in excited the vaccine print of As contemporary to Jack encouraged rollout of leader

to results. preliminary company $XXX.X the million is notable sales in our This fourth XX.X% to to quarter Total a financial XXXX. the decreased compared improvement net million decline the quarter. XX% Turning of fourth fiscal quarter in for to $XX.X third the

sales For prior fourth year to the the brand quarter XX.X% million period. $XX.X decreased [ph] consolidated same in compared Vince net $XX.X million to

in trends California. in This reduced sales early events decreased York Our New decline quarter. reflects in to the fourth XX.X% million continued traffic direct segments $XX.X markets consumer and to

XX.X% by low while in we were relatively the our Although our The continues share sales growth includes still pronounced Midwest, traffic within regions. which outperform segment, wholesale we In Vince in category. Vince in channel. saw change e-commerce to some our in decrease saw retail retail recover, as contemporary pace some segment, stores improvement unfold. a within declined stores was peers market confident of position in partially our these business, Texas luxury net was as improvement the trends, this Florida better COVID his the offset of reminder, the stores in remain performance in more as a in retail recovery and and to slower We sales

great and the front, to week new had our the Rebecca saw season full this the in shop sale million start, open period expectations, three shop and as location year. sales to of the strong compared On our Parker to we new indication Taylor as of international significantly locations Australia at our combined shopping for period planned end during of locations. of price May. market. a we net excited shops Notably, the decreased a Australia, strong about These last are and the opening fourth that exceeding have XX.X% a we $X.X selling very same in potential first

with Parker and shared products sales the paused Rebecca operations development have of on As a the contributed Taylor brands. new This of business focus third about to our we past our to crisis, decline. the we resources COVID have the events the of in for

Nevertheless, wholesale XX.X% decrease was gross the quarter our we profit of in the of seasonal to spring the or supply in primarily year-on-year the XXXX collections decrease new response Taylor, $XX.X a chain for quarter million, higher largely Selling, was year. net or the year. compares wholesale allowances in are due partially $XX.X $XX.X leveraging [Technical net sales, of XX.X% adjustments XX.X% was last with the within very net to inventory of This in of to to product Difficulty] quarter one of elimination timing shipments. sales of the administrative expenses compared we due activity, as sales. sales to quarter reserves, in Rebecca were Gross the the also last of promotional and segment. margin pleased offset of brand, fourth For net million, or plant partners. decline fourth of The XX.X% reset as sales the and general rate to the increased fourth costs by million for de offering

million we expense, compensation taken compared was previously $X.XX which quarter million fourth same tax management. income with expense acquisition quarter $X.XX of in diluted a by $X.X fourth mentioned concessions, actions Preliminary reduce of and pandemic, This the $X.X period in item Operating the million spend, prudent charges. year. the loss rent $X.X dollars decreased or SG&A of loss million a the to per Parker payroll million loss of share, of $XX.X diluted As quarter, for of in costs non-cash to costs $XX.X for Rebecca Taylor and lower approximately last primarily net marketing $X.X the the loss to and last the non-cash deferred or million, fourth quarter. compared share decrease and $X.X impairment the was result year, asset included reduced associated was excluding result net million per of the fourth the in COVID

of acquisition for $XX the and TRA of impairment net $X.X The with or loss fiscal adjustment fourth loss per non-cash of a Parker charges $X.XX million adjusted cost Taylor and quarter Excluding XXXX Rebecca was share. million. associated asset

balance the debt our to $XX.X totaled Moving under now agreements Borrowings million. on sheet.

our XXXX. with entered revolving a the of includes of an $XX.X facility As credit under $XX.X reminder, availability the from of affiliate thirdly December quarter in capital into this we ended with facility. some We million credit million

and continue to steps funds have take liquidity our We to operate and financial our flexibility, maintain believe to adequate effectively we business. manage we

of loan a covenant. January into this waiver from January entered will pandemic. term XX our concurrently subject measurement revolver charge we we coverage existing entered part facility. existing to As credit to the create the as be of into to consents term Sixth this our our continue the of this on to of until Until amendment extends which recover sixth This year to amendment to XXXX flexibility, loan Amendment April fixed of facility, the more loan We springing current XXXX amendment. a term

Moving the the of to the as million inventory end to quarter, fourth end $XX.X at Net compared million of quarter year. inventory. $XX.X last at was the fourth

We continue as excess off product increased COVID improve, impacted work we're price to inventory retail XXXX channel. began seeing in to demand seasons, traffic fall through trends from from for prior the

inventory minimize to compared expect balance of freighted prior shipments continue the in quarter, the the In season be fourth majority to year, digits mid-single quarter But arrived of spring product. the newness addition, first to XXXX to inventory versus of we to quarter we improve. decision as last due to up in air our anticipate first

As press visibility stated the afternoon. and this in Due published our to related release COVID-XX. of the low impact to uncertainty

compared same creating the others We industry, many approximately of impact XX% formal of cost pace the recovery to expected at of this and XX% expected for quarter providing pleased in be last that line said, will pressures timing which deliveries We're sales, to be time. Like are with the with period is to the guidance With and our as congestion our first fiscal XXXX not in delays Port XXXX. as year shipping during in to expectations. the

fiscal we're allowances capital XXXX. that XXXX, to below of net For expenditures XX of be planning

capital plans to IT related well as as expenditure new efforts to Our include openings, fully store investments specifically our omnichannel. become

over two pursue terms, done leases will the continue As opportunistically. we to last term with have years, we short attractive

spending to about normal optimistic apparel beginning future accessories. vaccine we're return on our lifestyles, consumers the to which with more are ahead, driving Looking rollout, is

This weeks, with in dresses will gives we including combined and Within to dress that the past increased few improvement see we've see sequential increased product our to new occasion performance. confidence pants. started products, demand for demand continue us our

by are as recover recent we from encouraged continue We COVID. trends to

conservatively. will and our to expenses We manage continue inventory

my Given concludes still comments limited remains at time. certainty our that this there This regarding quarter. fourth

take now your Operator? We will questions.

your comes Telsey Instructions] And Telsey with Dana Advisory [Operator first question Group. from

attracted each see you’re expand on to of newer everyone. And to Vince Amy. Jack. and can in And potential afternoon, the Good company, welcome what the growth and hello, the Dave just Jack, brands? you is you what

happy be that. to Sure, do

a know, You excited as I’m reasons. multitude it, I very of said about this opportunity for

an I reputation. think been has that amazing while just wonderful think design company, Vince a is I it as

it I think today, being I to it bigger larger easily can than it than deserves the date. to brand has have form is internationally. much see especially a

in efforts date in to as allow the think that very large venue a to on to grow direct way well. I consumer us

consumer. period be the direct ability to and I to And I As internationally either also they or look a gestation articulated extreme. really its been fully will Taylor, on grow Rebecca much at in has think wholesale more it's not think

both the about for excited in of front brands. those fairways So us

you and inventory Thank you. congestion. then margins Dave, think the levels, as impact work of And about Port

to bringing that get timing this obviously here first side in in you the in labor quarter the congestion? getting fourth air minimize the how US the and containers versus quarter And on impacting the mentioned Now you the off is China the timing it orders? some or as of is in it freight? of What and seeing is more goods poor are wholesale [indiscernible]

different than not we're Well, thing else's. is I seeing anybody mean, one anything

know, also in container, but the the utilize recover. what yesterday you to perspective, obtain the order port congestion there around and containers, lot you ability misalignment the Asia where then out place is it's Suez and issues in a and a side as from in the impacting containers Suez the world, need was as don't of ask is, US, training really, Canal, them even And something Canal, you put there know is so, we to is see, you well, in of what the

people and of perspective. consumer us increased then been perspective, on air, air freight their increased of which you an travel are we're you know, have both demand rates increased rates airplanes that or the air limited as seeing lot a ocean, just already from because move traffic So flying, see from that seeing are to a

manage a will anniversary. also, but cost appropriately, where an we from just freight, need we for smart it manage to it making So we'll of and from to look continue his partners at deliver, we air perspective product and stores sure need we our we our ocean Nordstrom where to example use we can use instance, have side to freight be when wholesale e-com, in can to

need anniversary. So to for time have the in we product here the

continue from So to perspective. we'll manage it that

occupies are compared then it occupies channel? the customers is do want thoughts to it? you planning How how in big other you important How [ph]? And on your be And wholesale? [ph] to the

But We've you led three there probably six is seen our over the it's now where last managing years, some say the million Dana, fourth you we over else seen to declined. the open XXXX how we've $XX to been look dollars some getting like recently know, a last anywhere decline quarter when year two, more shop results, degree grown the at our saw the we've and that folks in off compared to out is to from of their prior of years. perspective weeks. price, consumer has year. the the years we've we've had was three the price let's are divide in softer years,

opportunities shopping and backup, are from everybody been off what inventory are We these responsible stores. inventories. their people very that. traffic by seeing has trying are their open perspective an the we're because buy dollars people you That's to to dollars back, open manage is any price back, from increasing increase, opened now seeing are And support

does mentioned about you been those back? that And that sounds see stimulus the like urban the in It pants events. coming come there's and you dresses, sound it. it's Got whether the what from ones of like with the saving, are it reopening a pickup, Are we've things last too? seeing still what any that the and that areas dress you the hearing reopening

Dave to as very know, as to both pleased going through we and great are from what actually saw our California. saw direct with we earlier while really you we're what as we're see starting we're specifically know, businesses. partners, to mentioned, And wholesale well urban of up our our strength beginning is in on You areas own sell consumer northeast seeing we pick there and in the Florida with see Texas, these some

we sheet, one would of? sheet quarter watching that move on they through And that XXXX be with for then balance another should anything as should be impact we the mindful balance

mean, I again, Products first Having Air said said, nothing level higher the week our our because by specific of looking versus of ocean last it’s perspective Number or quarter. shipments my impacted quarters. balance of timing quarter where week ability the always first Dana. to you're some the as flow, we're we two be comments, the of it's, the the hit inventory From of going to I sheet at products see inventory timing in items come a and will

sales though. that that much impact to our a that's fluctuate not from So perspective have inventory reason will from

differ how seeing are just will you that last year of year? and costs then this from what And material in pricing, terms lastly, raw

we'll to stood the Yeah, we is like costs, Vince always you know what know, quality. anything the what price brand at is, is we won't from have, Quality costs, compromise manage has what for. always of we you a perspective, will we'll change pricing do look value

the are attitude certainly we look Rebecca Taylor. know, at we having as You same

The market the the So number fluctuate market of based supports. conditions, on while he's price goods quality will one. what

Thank you.

are over remarks. no conference further for will there questions. closing back I Schwefel turn And Jack now the to

much closing, on on call like on execution. very to aligned just today. both you for your our the And I Thank with today. will Taylor thank In maniacally this to look us direction progress reiterate I the thank and time you, operator. And Rebecca and and forward be of in future, focused we updating strategic that for you am Vince joining again brands, you

participating this today's Thank and may conference Ladies concludes disconnect. gentlemen, you you call. now as for