Vince Holding (VNCE) 10 Dec 242025 Q3 Earnings call transcript

Hello, everyone, and welcome to Vince Holding Corp.'s Third Quarter Fiscal 2024 Results Call. My name is Lydia, and I will be your operator today. After the prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] I'll now hand you over to Akiko Okuma, Chief Administrative Officer and Head of Investor Relations, to begin. Please go ahead. .

Chief morning, XXXX to the Results is Stefko, good Third Holding call and John Dave Fiscal and Quarter Conference Interim you, everyone. Financial Vince Welcome Corp.'s today Szczepanski, Thank Chief Officer; Officer. Executive Call. Hosting

let that begin, that you uncertainties results those and differ could call cause remind on subject to that certain which from expects. and constitute actual available are forward-looking SEC me today's are made Those on the risks this press we website. the Before in company's statements may filings, in and risks company are uncertainties which described the to release company's

no the assume not remain a and should obligation operative call. Investors any at undertakes time, to discussed information statements call update made on during the later will company that the

measures non-GAAP company that In with conformity related and included The and release website results in discussion, of investors.vince.com. to company's press addition, their company non-GAAP today's the in available today's presenting on measures presents and them comparable Discussions adjusted the GAAP most its financial adjusted in is are which the Investors on are measures. are basis. at in results section of an these reconciliations schedules, information of GAAP the today

to Now I'll over turn the Dave. call

to of results over . you, from call detail. our for Thank you, and I performance review joining turning outlook with and the Akiko highlights a discuss will more everyone, Third to thank us this our in begin morning. before John Quarter financial

transformation executing operating of while focus falling results top a quarter full-price driving model efforts. an business our line our more third short our performance increasingly ongoing efficient slightly Despite on Our delivered well gross reflect reorders through range results our international in-season entirely profitability driven guidance outlet lower-than-expected as in margin we channel, in as expansion. our by sales with line prior in driven our our lower-than-expected business wholesale stronger expectations,

activity but a even quarter. back more strategic channel, we performance to mentioned, the in margin our our outlet healthier decision led than made which yielded channel, to planned much the sales direct-to-consumer originally promotional pull for Within lower-than-expected the

With of we are our growth between we evenly as given fairly we to and the than quarter outpacing the spread the earnings was customer stores on sales the first lower the be full-price full-price file in timing prior we channels. wholesale ongoing a single-digit stronger high see year. to half delivered quarter our mentioned to This accelerate in e-commerce trends on work business, range expected focusing pleased our respect the in our of With shipments. our call, third last to earlier the performance, growth

purchasing international period. Despite In partners' DTC performance lower-than-expected channel, in-season we particularly in price saw our our with U.S. was the wholesale We a to during dollar dynamics, due strong to stronger these had addition, saw across believe partners, on the top line impact Asia. reorders this the of full we in season. similar largely decisions our

end We demand contemporary the into are continuing Vince. designer brands higher luxury from see to shift customer like assortments

again highlighted are Nordstrom brand growth with sales the the partners by supporting business we their apparel in mid-teens remain third our delivered strong, a wholesale Our as relationships quarter. women's and in key leading they

have they to as in XX-plus now by have recently to over years. women's pod. North discussed Sales, store Jill where department customers demonstrate our and the assortments the Pete our continue outperformed men's, the President by American Norton, Nordstrom, long with excited hosted behavior. past wear the also were knits of participated -- now we iconic We Nordy In history

offering. fabrications to continue While customers and price were at in to through our fall period pleased responded full a the half as transitional first successfully We typically to of assortment the the of more quarter sell the summer, to is summer color retail. pallet from

price see we we to with given we the colder entered strong slower sweaters fourth the resonate the this temperatures. full with will weather While that quarter start fall, a outerwear our unseasonably and did assortment warm assortments, believe a now

to which total opportunity sales. also currently in our see of we men's our XX% business, expanding exceeds addition, continue In

our to During the guide satisfaction communicate fits and a new measurements men's program more a we the decrease superior price. quarter, in of fabrics pants we a to highlighted with with range this competitive launch, retail clearly and names set returns. increase successfully introduced broader cost to customer launched which order Italian conjunction at pant In

We total business to goal men's in with have offering our XX% to been support initial the response pleased further of revenues. to very our expanding this and helps

progress the with look a we're seeing we in with file, have our are even we higher-value ability brand we acquire our opportunity confident initiatives further As more Vince to strength our in to the strategic the and customer customer. growth

lifetime amongst the enhance To further nearly to have support focused increasing these across to we through customer or direct-to-consumer we efforts, demand more value DICs customer especially for our initiatives XX% channel. our of across represent continued our of customers full-price opportunity base, on personalized efforts and targeted look XX% top acquisition

this and into traffic that through to believe access engagement we offerings stores other quarter cohort. holidays, heading encourage exclusive the we the and are opportunities events, During early have resonate will exploring introduced with

audience audience. rate direct December November our from Xx non-VIC recent campaign, saw redemption on through our of a and value higher VICs performance ended with our a Xnd most mill average than and order non-VIC that XX% Our outsized ran which

have acquisition another is are vehicle brand. through white for As opportunities identify we customer working to stores, new the actively before, and for space we discussed

and demographic wholesale to markets for top by lease this most evaluated Nashville X we in promising the Our data Nashville identified along Through open We identify executed our information first untapped recent store market will expansion XXXX. in analysis our Cushman with as the of Wakefield, one completed analysis, which store, zip code, sales with e-commerce U.S. late our a fiscal markets. recently & for

X additional market for in XXXX. are open an to top a also We hopeful store

of second region. in This in fiscal the are culture the of unique In new expanding addition, our our located and store XXXX. of in Street, shopping a history, London High known for we Merrill officially Bone the were opened blend presence also opening spring on location destination its London faint with

temporarily have in location expanding the this for and it We forward a metro season opened shopping to important market. our holiday look reach pop-up as

As and ahead, we other continue the we our omnichannel expand brand. presence will customers look to weakening our explore new enhance to and opportunities both to experience existing

delivering for transformation sustainable to continue we our also committed on we Vince remain plan. to As long-term position growth,

we plans to end our At third the fiscal the XXXX. ahead of are quarter, for our target of achieve

we working diversify on the also the making discussions ongoing exposure our in we been strategies have addition are light plan, regarding the our goods geographical cost improvements within to of part of In to transformation of tariffs. as

we we seasons, XX% As take actions we of in begin of product production nearly will XXXX reduction a for see to in our product believe China.

Further reduction are strategies discussed. being

to business across are expect across and all execute the we encouraged continue period. the thus Cyber a channels ahead, Monday Black driven to healthy results by quarter, very have this Friday, including we full-price Looking far

are year. deliver consumer. we results season to on we believe enthused remain for our are by this positioned the and to holiday given uncertainty While cautious date, around our outlook ongoing well do with the the we We objectives our shortened

our their acknowledge I our partners. for and the to relationships John, our Before our turn achieving would over wholesale call vendors goals efforts with like towards continued and team to while customers, I enhancing prioritizing

are remain turn to success. discuss John results I'll its highly detail. it confident in more to and and We dedicated our together over future ensuring to Vince's financial long-term in outlook now John?

morning, Thank good you, Dave, everyone. and

of and approach discussed, financial full our disciplined execution selling As to our quarter. price to our strengthen this Dave plans continue transformation foundation

prior to highlighted we meaningful compared by gross declined line bottom While total achieved year margin revenue the period, substantial expansion. improvements

decrease XXXX. in performance an third quarter. driven third and million additional company sales our company a decreased to sales Total in decrease quarter segment. walk key the decrease me total was fiscal the our for X.X% quarter metrics through in by our on to for wholesale and of segment X.X% net you $XX.X the million Let the direct-to-consumer year-over-year provide in $XX.X net compared financial X.X% color The

in these growth by the by below business international lower-than-expected in negatively lower-than-expected these in-season channel. sales expectations, reorders XXX factors as reviewed, Dave slightly in well results revenues As quarter outlet our wholesale points. were basis Combined, driven impacted our our as

revenue point activity impact basis factors, expectations, been segment which have ongoing in quarter direct-to-consumer more a to the in compared was would our headwinds line well these prior XXX our in which on the incorporated as promotional trends from pullback Excluding year. as store closures, the to

net third top freight compares previously third the and and XXX last in discussed or to respect a increase in quarter line driven the XX% on from that in approximately gross points direct-to-consumer basis shipments we rate had margin With XX.X% million discounting. lower The sales. Gross was costs profit deceleration net timing basis sales we our or the quarter the of lower last to $XX.X the to of of prior was earlier call. product given the lower of year. This million wholesale in segment related our and promotional related to $XX.X activity business, costing points quarter expected by XX in

decrease prior of Administrative third offset in year. to to the were $X.X $XX.X and were for factors a General to as sales XX relatively expenses last partially These expenses. XX.X% million flat XX.X% year the by were or attributable quarter SG&A in compared or channel net dollars approximately of the $XX.X million quarter mix. Selling, points of net and million advertising compared marketing sales as basis

of decrease period A increased authentic given benefits and the to $X.X to occupancy compensation. the last and with income million last same quarter offset due operating rent transaction-related of million the in compensation income $X.X an expense in Operating costs expenses in and severance year. by million and $X.X the was year for compared third compared transaction was $X.X higher $X.X million primarily to million incentive favorability

deleverage adjusted the quarter compared expenses was Adjusted for driven to operating third points in prior the quarter approximately to dividend $X increased the XXXX year. partially period, interest by offset compared the expansion, basis given $X.X XXX operating quarter prior $X.X Excluding the year decreased the fiscal income which expense margin gross of in year million. revenue. Net transaction-related margin million in the incurred prior by the million the third SG&A was for

taxes this annual to the year prior provision year-over-year for interim the as The by transactions quarter our for pretax our as the period related no for driven year. losses ordinary for in year-to-date was income refinancing income There and as well ordinary expenses debt. reduction given fiscal in decrease pretax expectation the was the primarily

be We interim year. until than period we determined for the that should have such, as not it the of last provisions that last per the period income income current third tax $X.XX And the not more compares loss an same million income in Net to year-to-date will recognized share years. benefit in of This compared or $X.X income. million $X.XX $X.X share realized earnings ordinary or be year. benefit future earnings in per year-to-date million third is was for likely not quarter the of tax $X of tax of net pretax the the quarter or to

transaction items includes period onetime year related prior The to expenses.

Excluding third these income $X.XX. was net income $X.X items, of XXXX million the share fiscal quarter of adjusted per in or

balance the the compared of end was Net last year. the third the to sheet. Moving inventory $XX.X million as third the at to end at of $XX.X quarter quarter million

XXXX. single back As growth XXXX we for digits we to channels, both high are in into fiscal take investing be up wholesale to a approach inventory the and support to fiscal inventory to expect to now DTC continuing disciplined

Turning now to the outlook balance year. for our the of

down up the For compared digits low total to expect single $XX.X QX fiscal be year sales mid-single net in digits to prior quarter. XXXX, million we to

approximately we XXX operating fiscal basis expect to year's operating margin, to points of last to respect adjusted increase XXXX X.X%. operating QX margin compared With XXX negative to margin

margin price We of expect to our from drivers incentive full SG&A compensation. somewhat be initiatives and deleverage promotions impact operating offset the the by increase, penetration, improved transformation primary of disciplined the

fiscal fiscal decline total XXXX With in respect which to represented in sales. range which year, million expect $X.X reminder, low included to million is net $XXX.X week, a full continue which, a compared approximately XXrd the our to outlook, a XXXX we to year in single-digit net sales fiscal as XX-week

disciplined also operating noncomparable points to a that increase expenses to driven through adjusted in gross We margin XX continue approximately outlook of from and basis XXXX XX includes we adjusted XXX to X.X%. impact offset points expect This of compared ongoing management, transformation fiscal our negative by XXXX through royalty to margin margin basis part May expect operating efforts. expansion to expense

we plan As to are reviewed, of enter the are Dave target the with our fiscal making we transformation are progress achieve with annual pleased fourth we as XXXX. of our plan ahead our and quarter

transformation from expenses. total about and initiatives the to are reduce reminder, cost compromises promotions a our to with driven quality with As half balance and expected no pricing to by from the targeted efficiencies product come plan improve of benefits operating

concludes will over it the This I And open our turn the to now questions. for call operator remarks. to

with [Operator Instructions] Eric from we SCC have Research. Beder a question

Let's come want Vince. I talk in. about talk a to little about Vince. the that bit some I AVG know started products have of AVG

Some potential the stores started new for come has to into year QX. channel we the to thinking what should of what the licensed in that? have And response products about the going then terms categories retail product of Curious forward? been be next

Eric. Thanks,

goods, around had really It's prespring are the fall this we've season licensed a now and really and years. which coming cold starting -- been been weather they've will few at through for time that -- have to So is products shoes ship. licenses be in

So with Cyber our and perform. products we're Monday remarks, Friday, as Black we the indicated continue happy -- licensed in to our

that been that's see signed, transaction, be but fall entered since spring XXXX. new to there expected And season. goods that with not belts leather you'll the license When of will licenses into until ship has Vince AVG will launch handbags then and the

Okay.

terms the the terms thinking the be QX even there DTC. little profitability the base store store the in saw more a I'm returns, operating potential potential, in line for opening significant aggressively. longer I that increase we both about bit potential of in excited the And for term, how in and on U.S., a was you're of the in In out stores expanding should U.K.

a we talk where U.S. wholesale I'll can address store e-commerce remarks, sales. our we our stores. the in a where kind study can midyear across a . And results implied, about the our our combined in those allowed we've completed look Cushman so the states, in in the only can shopping from where when where who happen and you concentration stores then from markets age we and said the in technology, kind at with John and as QX, XX Wakefield, of of as We fill sales cross of centers, the down malls is. and consumer today's define to with heavy with along & entire of demographics you stores with Los at and perspective, looked have U.S., white we market York Angeles, and we space lot a and the New U.S. we

in markets So to good Northwest are us. imagine, Pacific really Midwest for we a you and map, feel few. understanding can what name at And good looking the we have a the opportunities

X So Nashville became the top markets. of

U.S. we're at top X the and U.K., economics drive decision-making. opportunistic. look let just you markets, looking so outside at not And but the We'll focused to at more When as still top much look on you looking opportunities. the and markets we're us the

felt being open important existing was brand, that that's We the our we was similar X store City. years just opportunity for especially in to results shopping here Dracut York on New looking in a Madison at thought MarlaBone been location It about now. is an fabulous the Avenue for

it time to was thought investment. that we the So make right

a Eric, testing As situations back conditions looked also we China because talked and quarter, in China. where market like stores, in we we're last economic we pulled of China on going the and economic at

from opportunity. view we U.S. that's and world how new store a the So the

on performance. about when that, add store to And just Eric, we're talking

Sorry, you a follow-up. ask wanted to

Go ahead.

activity the mention fleet of impacted the that that margin we financial price we're full store around seeing even and What efforts really had strategy was bottom top just positive the our was in to we of the as going pullback see line a promotional overall is all though No, today line the closures from I performance. in our we're is what store seeing transformation side terms selling impact driving really well -- that as in results. by

a helping the balanced is us to And really back able we're that give season the inventory other right being is seeing customer. in to thing offer the invest in

really in of So the all driving stores. factors performance are those

and last on the terms be getting own Okay. about your we go that should all over going expanding out? opportunity for how the stores Nordstrom How the congrats men's did in into stores forward in question, And X XX%. thinking men's expansion of

Eric. Thanks, Yes.

a early. across very pleased we're with very, from men's. results our perspective, That mean Nordstrom So -- I Nordstrom the results includes the it's board.

seeing but are is certainly -- growth we So it our from early. still view, little bit a

to we store that but our own we that strategy expansion, performing where investment needed. you and this performance program But fits In launch see in not reacting its again, was going year. we've Eric, stores, into have evaluating seeing and continued We're expect as on men's well. men's making also we're certainly is just and critical The a that X stores, men's we're forward. pant know, results made our stand-alone how that to the adjustments

our Thank concludes you. This Q&A session.

call any for So Stefko, I'll now the back Dave turn over closing to comments.

us and call. our to fiscal everyone. you Thank on today, results forward holidays, Okay. we year-end updating year-end you XXXX Happy our for April in . look joining

Thank Thank today's call. you. This concludes for joining. you

You may lines. now your disconnect