[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements for Vince Holding Corp. for the three months ended May 3, 2025, and related disclosures [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Vince Holding Corp. as of May 3, 2025, and for the three-month period then ended, compared with the previous fiscal year-end and the corresponding prior-year period [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=a)%20Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of May 3, 2025, total assets were $218.0 million, a slight decrease from $222.7 million at February 1, 2025, primarily due to lower trade receivables and other accrued expenses, partially offset by an increase in inventories and long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | May 3, 2025 | February 1, 2025 | | :--- | :--- | :--- | | **Total Assets** | **$217,957** | **$222,735** | | Cash and cash equivalents | $2,588 | $607 | | Inventories, net | $62,260 | $59,146 | | **Total Liabilities** | **$180,790** | **$180,976** | | Long-term debt | $34,749 | $19,156 | | **Total Stockholders' Equity** | **$37,167** | **$41,759** | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=b)%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For the three months ended May 3, 2025, the company reported a net loss of $4.8 million, a significant shift from a net income of $4.4 million in the prior-year period, driven by decreased net sales, lower gross profit, and higher SG&A expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 FY2025 (ended May 3, 2025) | Q1 FY2024 (ended May 4, 2024) | | :--- | :--- | :--- | | Net sales | $57,933 | $59,171 | | Gross profit | $29,163 | $29,913 | | (Loss) income from operations | $(4,438) | $5,604 | | Net (loss) income | $(4,803) | $4,380 | | Diluted (loss) earnings per share | $(0.37) | $0.35 | - The prior year's results for the three months ended May 4, 2024, included a significant gain on the sale of the Rebecca Taylor subsidiary amounting to **$7.6 million**, which favorably impacted income from operations and net income for that period[20](index=20&type=chunk)[53](index=53&type=chunk) [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=c)%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased from $41.8 million at the beginning of the quarter to $37.2 million as of May 3, 2025, primarily due to the net loss of $4.8 million for the period - The primary driver for the decrease in stockholders' equity during the quarter was the net loss of **$4.8 million**[25](index=25&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=d)%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $11.8 million for the quarter, a significant increase from $3.9 million in the prior-year period, mainly due to changes in working capital, while net cash provided by financing activities was $15.2 million, primarily from net borrowings under the revolving credit facility Cash Flow Summary (in thousands) | Activity | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,817) | $(3,878) | | Net cash used in investing activities | $(1,424) | $(740) | | Net cash provided by financing activities | $15,219 | $5,003 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=e)%20Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant corporate events and accounting policies, including the acquisition of a majority stake by P180 in January 2025, the 2023 sale of Vince intellectual property to ABG Vince and subsequent license agreement, and the completed wind-down and sale of the Rebecca Taylor business - On January 22, 2025, **P180 Vince Acquisition Co.** acquired a majority stake (approx. **67%**) in the Company from Sun Capital Partners[37](index=37&type=chunk)[65](index=65&type=chunk) - In May 2023, the Company sold its Vince brand intellectual property to **ABG Vince** for **$76.5 million** in cash and a **25%** membership interest, concurrently entering a long-term license agreement requiring annual guaranteed minimum royalties of **$11.0 million**[34](index=34&type=chunk)[54](index=54&type=chunk)[62](index=62&type=chunk) - On May 3, 2024, the Company completed the sale of all outstanding shares of Rebecca Taylor, Inc., recognizing a gain of **$7.6 million** as the subsidiary was in a net liability position[53](index=53&type=chunk) - In connection with the P180 acquisition, the Third Lien Credit Facility was modified, resulting in a debt extinguishment where the outstanding principal was reduced by approximately **$27,000**, leaving **$7,500** outstanding[94](index=94&type=chunk)[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for the first quarter of fiscal 2025, highlighting a 2.1% decrease in net sales to $57.9 million and a shift to an operating loss of $4.4 million from an income of $5.6 million in the prior year Q1 FY2025 vs Q1 FY2024 Performance (in thousands) | Metric | Q1 FY2025 | Q1 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $57,933 | $59,171 | -2.1% | | Gross Profit | $29,163 | $29,913 | -2.5% | | Gross Margin | 50.3% | 50.6% | -30 bps | | SG&A Expenses | $33,601 | $31,943 | +5.2% | | (Loss) Income from Operations | $(4,438) | $5,604 | N/A | - The decrease in gross margin was primarily driven by unfavorable impacts from higher freight and duty costs (**260 bps**) and wholesale channel mix (**120 bps**), partially offset by favorable impacts from lower product costing and higher pricing (**330 bps**)[156](index=156&type=chunk) - SG&A expenses increased by **$1.7 million**, or **5.2%**, mainly due to higher marketing, legal, IT, and retail remodel/relocation costs[157](index=157&type=chunk)[163](index=163&type=chunk) [Performance by Segment](index=29&type=section&id=Performance%20by%20Segment) The Vince Wholesale segment saw a slight sales increase of 0.1% to $30.3 million, but its income from operations decreased by 7.7% to $9.4 million, while the Vince Direct-to-consumer segment's sales fell 4.4% to $27.6 million, and its operating loss widened to $0.8 million from $0.1 million in the prior year Segment Net Sales (in thousands) | Segment | Q1 FY2025 | Q1 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Vince Wholesale | $30,290 | $30,257 | +0.1% | | Vince Direct-to-consumer | $27,643 | $28,914 | -4.4% | - Vince Wholesale income from operations decreased by **$0.8 million**, primarily due to lower gross margin[167](index=167&type=chunk) - Vince Direct-to-consumer comparable sales (including e-commerce) increased by **2.8%**, driven by higher e-commerce traffic, but total segment sales declined due to a **$2.0 million** decrease in non-comparable sales, including the impact of four net store closures since the prior year[168](index=168&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash, operating cash flows, and its $85 million revolving credit facility, with net cash used in operations of $11.8 million and net borrowings of $15.4 million from the credit facility during the quarter - Net cash used in operating activities was **$11.8 million**, primarily due to a net loss and cash used in working capital, including a decrease in accounts payable and an increase in inventories[172](index=172&type=chunk) - Net cash provided by financing activities was **$15.2 million**, mainly from **$15.35 million** in net borrowings under the revolving credit facilities[176](index=176&type=chunk) - As of May 3, 2025, the company had **$26.8 million** in borrowings and **$6.2 million** in letters of credit outstanding under its 2023 Revolving Credit Facility, with **$20.4 million** of availability[85](index=85&type=chunk)[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "smaller reporting company," Vince Holding Corp. is not required to provide the information requested in this item - The company is exempt from this disclosure requirement due to its status as a "smaller reporting company"[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of May 3, 2025, due to a previously identified material weakness in internal control over financial reporting related to inadequate user access controls, with remediation efforts ongoing - The CEO and CFO concluded that disclosure controls and procedures were not effective as of the end of the period[205](index=205&type=chunk) - The ineffectiveness is due to a material weakness in internal control over financial reporting, specifically related to not maintaining adequate user access controls to ensure appropriate segregation of duties and restrict access to financial applications and data[207](index=207&type=chunk) - Remediation efforts are in progress, including modifying system access rights, re-certifying user access, and improving user provisioning/de-provisioning processes[209](index=209&type=chunk)[210](index=210&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers other information not included in the financial statements, such as legal proceedings, risk factors, and various disclosures [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings that arise in the ordinary course of business, which management believes will not have a material adverse impact on the company's financial position, results of operations, or cash flows - The company is party to legal proceedings arising in the ordinary course of business and does not expect them to have a material adverse impact[214](index=214&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) The company's risk factors have not materially changed from its 2024 Annual Report on Form 10-K, except for a new risk regarding its NYSE listing, as it received a notice of non-compliance on May 6, 2025, for failing to meet minimum market capitalization and stockholders' equity requirements - On May 6, 2025, the company received a non-compliance notice from the NYSE for failing to meet the minimum market capitalization and stockholders' equity requirements[218](index=218&type=chunk) - As of May 5, 2025, the 30-trading day average market capitalization was approximately **$22.6 million**, and the last reported stockholders' equity was **$41.8 million**, both below the **$50 million** threshold[218](index=218&type=chunk) - The company is required to submit a business plan to the NYSE within 45 days to demonstrate how it will regain compliance, with failure potentially leading to delisting[219](index=219&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities during the period[221](index=221&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - There were no defaults upon senior securities during the period[222](index=222&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[223](index=223&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended May 3, 2025 - No directors or officers made changes to their trading arrangements during the quarter[224](index=224&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and Inline XBRL data files - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[225](index=225&type=chunk)

Vince Holding (VNCE) Q1 2026 Earnings Call June 17, 2025 08:30 AM ET Company Participants Akiko Okuma - Chief Administrative Officer & General CounselBrendan Hoffman - CEO & DirectorYuji Okumura - CFOMichael Kupinski - Director of Research, Managing Director, Head of Technology Research Operator Good morning or good afternoon all, and welcome to the Vince Q1 twenty twenty five Earnings Conference Call. My name is Adam, and I'll be your operator today. I will now hand the floor to Akiko Okuma to begin. So pl ...

Financial Data and Key Metrics Changes - Total company net sales for Q1 2025 decreased by 2.1% to $57.9 million compared to $59.2 million in Q1 2024 [13] - Gross profit was $29.2 million, representing 50.3% of net sales, down from 50.6% in the prior year [14] - Operating loss for Q1 was $4.4 million, compared to an operating income of $5.6 million in the same period last year [15] - Net loss for Q1 was $4.8 million, or a loss per share of $0.37, compared to net income of $4.4 million, or income per share of $0.35 in Q1 2024 [17] - Adjusted EBITDA was negative $3 million for Q1, compared to negative $1.5 million in the prior year [18] Business Line Data and Key Metrics Changes - The wholesale segment was relatively flat compared to the prior year, while the direct-to-consumer segment declined by 4.4% due to planned store activity and softer traffic trends [13] - Improved product margins were noted, excluding freight and distribution costs, indicating a healthier margin business [7] Market Data and Key Metrics Changes - The company has significantly reduced its exposure to China, with expectations that by spring 2026, exposure will be approximately 25% of the cost of goods [19] - The company is experiencing a sequential improvement in trends, particularly in the e-commerce channel [6] Company Strategy and Development Direction - The company is focused on mitigating the impact of evolving tariff policies by negotiating with vendors and diversifying its supply chain [5] - Plans to open new stores in Nashville and Sacramento later this year, alongside recent store remodels to enhance customer experience [10] - The strategy includes maintaining product quality while diversifying sourcing outside of China [20] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the macroeconomic environment and has decided not to provide full-year guidance due to ongoing volatility [18] - There is optimism about the second quarter, with expectations for net sales to be flat to down 3% compared to the prior year [19] Other Important Information - Selling, general, and administrative expenses increased to $33.6 million, or 58% of net sales, compared to 54% in the prior year [14] - The company is committed to disciplined expense management and operating excellence despite the challenges faced [18] Q&A Session Summary Question: Trends in freight costs and distribution methods - The company has shifted to air shipping for more products in Q1 due to timing issues and expects to see higher freight costs in Q2 [24][26] Question: Impact of trade policy issues in the third and fourth quarters - Management believes they can mitigate some tariff impacts through supplier discounts and strategic pricing increases [28] Question: Plans for price increases - The company has implemented some price increases but aims to keep them reasonable and maintain value for consumers [29] Question: Factors driving positive consumer trends - The introduction of linen products has been well received, and the company has successfully extended its spring assortment despite delays in pre-fall shipments [32]

Core Points - The Bank of New York Mellon Corporation (BNY) announced the election of Robin Vince as Chairman, in addition to his role as CEO, effective September 1, 2025 [1] - Joe Echevarria will transition to the role of lead independent director, having previously held this position from 2016 to 2019 [1][4] - Robin Vince has been CEO since August 31, 2022, and has shown a strong commitment to strategy, execution, and client service [2][5] - As Chairman, Robin Vince will focus on setting the board agenda and driving the firm's transformation and strategy [3] - Joe Echevarria's responsibilities as lead independent director will include liaising between independent directors and the Chairman, and managing independent director meetings [4] Company Overview - BNY is a global financial services company managing $53.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management as of March 31, 2025 [6] - The company has a long history of over 240 years, serving over 90% of Fortune 100 companies and nearly all top 100 banks globally [6] - BNY is recognized among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators [7]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Vince Holding Corp. operates the Vince brand through wholesale and direct-to-consumer channels under a long-term license agreement - The company operates primarily through two segments: Vince Wholesale and Vince Direct-to-consumer. It has wound down its Rebecca Taylor and Parker businesses[23](index=23&type=chunk)[36](index=36&type=chunk) Net Sales by Segment (Fiscal Years 2024 & 2023, in thousands) | Segment | FY 2024 Net Sales | % of Total | FY 2023 Net Sales | % of Total | | :--- | :--- | :--- | :--- | :--- | | Vince Wholesale | $165,349 | 56.3% | $149,603 | 51.1% | | Vince Direct-to-consumer | $128,103 | 43.7% | $143,096 | 48.9% | | **Total Vince Net Sales** | **$293,452** | **100.0%** | **$292,699** | **99.9%** | - A single wholesale partner, Nordstrom Inc., accounted for **26%** of net sales in fiscal 2024, up from **20%** in fiscal 2023, highlighting significant customer concentration[24](index=24&type=chunk) - On January 22, 2025, P180, Inc. acquired a majority stake in the company from Sun Capital Partners, Inc[16](index=16&type=chunk)[28](index=28&type=chunk) - The company sold its Vince brand intellectual property to ABG Vince on May 25, 2023, and now operates under a long-term license agreement, paying royalties on net sales[15](index=15&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) Vince Retail Store Count | Fiscal Year | 2024 | 2023 | | :--- | :--- | :--- | | Beginning of year | 63 | 67 | | Net (closed) opened | (6) | (4) | | **End of year** | **57** | **63** | [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks related to its business, supply chain, technology, and corporate structure, including trade policies and license agreement terms [Risks Related to Business and Industry](index=14&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Key business risks include U.S. trade policy changes, liquidity challenges, customer concentration, and strict terms of the ABG Vince license agreement - Changes to U.S. trade policy, including a new universal baseline tariff of **10%** and a **145%** tariff on most Chinese products announced in April 2025, significantly increase product costs and could materially affect financial condition[64](index=64&type=chunk)[65](index=65&type=chunk) - The company's ability to service debt and fund operations is dependent on generating sufficient cash flow, which could be negatively impacted by tariffs, potentially affecting borrowing capacity under its credit facility[66](index=66&type=chunk) - The loss of, or a significant decrease in purchases from, its largest wholesale partner, which accounted for **26%** of total revenue in fiscal 2024, could substantially reduce revenue[72](index=72&type=chunk) - The company's entire business relies on the License Agreement with ABG Vince. Failure to meet requirements such as minimum net sales, royalty payments, or maintaining a minimum of **45** retail stores could lead to termination of the license, resulting in a complete loss of revenue[76](index=76&type=chunk)[77](index=77&type=chunk)[58](index=58&type=chunk) - ABG Vince has broad approval rights over design, marketing, new customer accounts, and new retail locations, and can remove existing wholesale partners, which could constrain the company's ability to operate its business as intended[79](index=79&type=chunk) [Risks Related to Supply Chain](index=28&type=section&id=Risks%20Related%20to%20Our%20Supply%20Chain) Supply chain risks include heavy reliance on foreign sourcing, particularly China, concentration among independent manufacturers, and centralized third-party distribution - The company is heavily reliant on foreign sourcing, with **66%** of its product costs in fiscal 2024 related to production in China, exposing it to risks from tariffs, trade restrictions, and political instability[103](index=103&type=chunk) - The company relies on independent manufacturers without long-term agreements. The top five manufacturers accounted for approximately **59%** of finished product production in fiscal 2024, creating a significant concentration risk[107](index=107&type=chunk) - The company's distribution relies on third-party facilities in California, Hong Kong, and Belgium. Disruptions at these locations, such as port delays in California, could harm the ability to meet customer demand and increase costs[112](index=112&type=chunk) [Risks Related to Information Technology and Security](index=34&type=section&id=Risks%20Related%20to%20Our%20Information%20Technology%20and%20Security) IT risks include susceptibility to cyberattacks, challenges in system optimization, and the need to comply with evolving data privacy regulations - The company is subject to risks from cyber or malware attacks, which could disrupt operations, lead to data breaches, and result in significant expenses and reputational harm[117](index=117&type=chunk) - The company is continuously improving its IT systems. Failure to successfully optimize these systems, such as the customer data platform and e-commerce website, could harm business operations and financial results[118](index=118&type=chunk) - Failure to comply with various privacy laws and regulations, such as GDPR and CCPA, could result in governmental actions, litigation, and fines, adversely affecting the business[119](index=119&type=chunk) [Risks Related to Structure and Ownership](index=36&type=section&id=Risks%20Related%20to%20Our%20Structure%20and%20Ownership) Structural risks include maintaining NYSE listing requirements, the influence of P180 as a controlled company, and reduced disclosure obligations as a smaller reporting company - The company must maintain certain financial criteria to keep its common stock listed on the NYSE, including a minimum market capitalization or stockholders' equity[121](index=121&type=chunk) - As of April 21, 2025, P180 owned approximately **56%** of the company's common stock, making it a "controlled company." This gives P180 significant influence, and its interests may differ from those of other stockholders[122](index=122&type=chunk) - The company is a "smaller reporting company," which allows for reduced disclosure obligations, potentially making its common stock less attractive to investors[123](index=123&type=chunk) [Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments to report - The company reports no unresolved staff comments[124](index=124&type=chunk) [Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) The company maintains a cybersecurity risk management program with executive and board oversight, and has not identified any material incidents - The company employs a cybersecurity program with tools like network monitoring and vulnerability assessments, an incident response plan, and regular employee training to manage risks[125](index=125&type=chunk)[126](index=126&type=chunk) - Cybersecurity governance involves a team led by the Chief Information Officer (CIO) for day-to-day management, with oversight from the Audit Committee of the Board of Directors, which receives regular reports[127](index=127&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - The company has not identified any risks from past or current cybersecurity incidents that are reasonably likely to materially affect its business strategy, results of operations, or financial condition[128](index=128&type=chunk) [Properties](index=38&type=section&id=Item%202.%20Properties) The company leases all its corporate and retail facilities, including 57 Vince stores and key offices in New York, Los Angeles, and Paris Significant Leased Corporate Facilities (as of Feb 1, 2025) | Location | Use | Approx. Square Footage | | :--- | :--- | :--- | | New York, NY | Corporate Office | 49,492 | | Los Angeles, CA | Vince Design Studio | 28,541 | | Paris, France | Vince Showroom | 4,209 | - As of February 1, 2025, the company operated **57** retail stores, comprising **43** full-price stores and **14** outlet stores[87](index=87&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk) - The **57** company-operated Vince retail stores are all leased and occupy a total of **139,908** gross square feet[132](index=132&type=chunk)[135](index=135&type=chunk) [Legal Proceedings](index=42&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, which are not expected to materially impact its financial position - The company is involved in ordinary course legal proceedings but does not expect them to have a material adverse impact on its financials[136](index=136&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[137](index=137&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, has few record holders, and has never paid cash dividends due to growth plans and debt restrictions - The company's common stock trades on the NYSE under the symbol "VNCE"[139](index=139&type=chunk) - The company has never paid cash dividends and does not plan to in the foreseeable future, with payments also being restricted by debt covenants[141](index=141&type=chunk) - No shares of common stock were repurchased by the company in the fourth quarter of fiscal 2024[143](index=143&type=chunk) [Reserved]](index=23&type=section&id=Item%206.%20%5BReserved%5D) This section is intentionally reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2024 saw flat net sales but a significant net loss due to a goodwill impairment, despite improved gross margin, with liquidity dependent on cash flow and credit facilities [Results of Operations](index=45&type=section&id=Results%20of%20Operations) Fiscal 2024 net sales were flat, but a $32.0 million goodwill impairment led to a $19.0 million net loss, despite a 400 basis point increase in gross margin to 49.5% Fiscal 2024 vs. Fiscal 2023 Operating Results (in thousands, except per share data) | Metric | Fiscal 2024 | Fiscal 2023 | | :--- | :--- | :--- | | Net Sales | $293,452 | $292,890 | | Gross Profit | $145,179 | $133,292 | | Gross Margin % | 49.5% | 45.5% | | Impairment of goodwill | $31,973 | $0 | | (Loss) income from operations | ($17,176) | $31,624 | | Net (loss) income | ($19,047) | $25,446 | | Diluted (loss) earnings per share | ($1.51) | $2.04 | - The gross margin rate increased by **400 basis points** to **49.5%** in fiscal 2024, primarily due to a **330 basis point** positive impact from lower promotional activity and a **320 basis point** positive impact from lower product/freight costs. This was partially offset by a **150 basis point** negative impact from new royalty expenses[159](index=159&type=chunk)[167](index=167&type=chunk) - A goodwill impairment charge of **$31,973** was recorded in fiscal 2024. In contrast, fiscal 2023 included a **$32,808** gain on the sale of intangible assets[160](index=160&type=chunk) - SG&A expenses increased by **2.6%** to **$138.0 million**, driven by higher rent expense (**$4.7 million**) and compensation (**$4.3 million**), partially offset by a decrease in transaction-related expenses (**$5.0 million**)[162](index=162&type=chunk)[168](index=168&type=chunk) [Performance by Segment](index=47&type=section&id=Performance%20by%20Segment) Vince Wholesale sales grew 10.5% to $165.3 million with increased operating income, while Direct-to-consumer sales declined 10.5% to $128.1 million due to reduced promotions Segment Performance (Fiscal 2024 vs. 2023, in thousands) | Segment | FY24 Net Sales | FY23 Net Sales | FY24 Income from Ops | FY23 Income from Ops | | :--- | :--- | :--- | :--- | :--- | | Vince Wholesale | $165,349 | $149,603 | $57,905 | $43,416 | | Vince Direct-to-consumer | $128,103 | $143,096 | $2,970 | $5,774 | - Vince Wholesale net sales increased by **10.5%** due to higher full-price shipments, and operating income increased by **33.4%** due to higher sales and improved gross margin[177](index=177&type=chunk)[178](index=178&type=chunk) - Vince Direct-to-consumer net sales decreased by **10.5%**, with comparable sales (including e-commerce) down **4.8%** primarily due to a decrease in promotional activity. Operating income fell due to lower sales and higher SG&A expenses[179](index=179&type=chunk)[180](index=180&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is driven by cash from operations and an $85 million revolving credit facility, with fiscal 2024 seeing increased operating cash flow and significant debt repayments Summary of Cash Flows (in thousands) | Activity | Fiscal 2024 | Fiscal 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,059 | $1,640 | | Net cash (used in) provided by investing activities | ($4,232) | $75,540 | | Net cash used in financing activities | ($18,381) | ($77,079) | - In June 2023, the company entered into a new **$85 million** 2023 Revolving Credit Facility, replacing its previous 2018 facility. As of Feb 1, 2025, **$11.4 million** was outstanding with **$39.8 million** available[193](index=193&type=chunk)[202](index=202&type=chunk)[394](index=394&type=chunk) - On May 25, 2023, the company repaid and terminated its Term Loan Credit Facility using proceeds from the sale of its intellectual property[191](index=191&type=chunk)[393](index=393&type=chunk) - In connection with the P180 Acquisition in January 2025, the company paid down **$20.0 thousand** of its Third Lien Credit Facility and had an additional **$7.0 thousand** forgiven, reducing the outstanding principal by approximately **$27.0 thousand**[214](index=214&type=chunk)[378](index=378&type=chunk) [Contractual Obligations](index=58&type=section&id=Contractual%20Obligations) As of February 1, 2025, total contractual obligations were $274.2 million, primarily comprising operating leases, guaranteed minimum royalties, and other purchase obligations Contractual Obligations as of February 1, 2025 (in thousands) | Obligation Type | 2025 | 2026-2027 | 2028-2029 | Thereafter | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Other contractual obligations | $40,887 | $5,898 | $0 | $0 | $46,785 | | Guaranteed Minimum Royalty | $11,000 | $22,000 | $22,000 | $33,000 | $88,000 | | Operating lease obligations | $22,466 | $37,159 | $32,442 | $39,608 | $131,675 | | Long-term debt obligations | $0 | $0 | $7,743 | $0 | $7,743 | | **Total** | **$74,353** | **$65,057** | **$62,185** | **$72,608** | **$274,203** | [Critical Accounting Estimates](index=60&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include revenue recognition, inventory valuation, goodwill fair value assessment, and income taxes, all requiring significant management judgment - Revenue recognition requires significant estimates for variable consideration such as chargebacks, markdown allowances, and sales returns. A hypothetical **1%** change in these reserves would impact accounts receivable and net sales by **$69.0 thousand**[222](index=222&type=chunk)[225](index=225&type=chunk) - Inventory valuation is subjective and requires assessing the future desirability and pricing of out-of-season inventory. A hypothetical **1%** change in the obsolescence reserve would impact inventory and cost of products sold by **$25.0 thousand**[226](index=226&type=chunk)[228](index=228&type=chunk) - In fiscal 2024, the annual goodwill impairment test was based on the transaction price of the P180 Acquisition. This quantitative test determined the fair value of the Vince Wholesale reporting unit was below its carrying value, resulting in a full goodwill impairment charge of **$31,973 thousand**[232](index=232&type=chunk)[339](index=339&type=chunk) - The company maintains a full valuation allowance on most of its deferred tax assets, as it does not believe it is more likely than not that they will be realized. The valuation allowance was **$53.4 million** as of February 1, 2025[237](index=237&type=chunk)[447](index=447&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from this disclosure requirement due to its status as a smaller reporting company - The company is exempt from this disclosure requirement due to its status as a "smaller reporting company"[239](index=239&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, including the independent auditor's report and detailed notes [Report of Independent Registered Public Accounting Firm](index=80&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on the financial statements, identifying revenue recognition as a critical audit matter - The auditor, PricewaterhouseCoopers LLP, issued an unqualified (clean) opinion on the company's consolidated financial statements[284](index=284&type=chunk) - The audit identified "Revenue Recognition" as a Critical Audit Matter, citing the high degree of auditor effort involved in performing procedures to test revenue transactions and balances[288](index=288&type=chunk)[290](index=290&type=chunk) [Consolidated Financial Statements](index=83&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of $222.7 million and a net loss of $19.0 million for fiscal 2024, with $22.1 million in operating cash flow Consolidated Balance Sheet Summary (in thousands) | | Feb 1, 2025 | Feb 3, 2024 | | :--- | :--- | :--- | | Total Current Assets | $96,576 | $84,802 | | **Total Assets** | **$222,735** | **$225,149** | | Total Current Liabilities | $73,546 | $61,428 | | **Total Liabilities** | **$180,976** | **$178,000** | | **Total Stockholders' Equity** | **$41,759** | **$47,153** | Consolidated Statement of Operations Summary (in thousands) | | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Net Sales | $293,452 | $292,890 | | Gross Profit | $145,179 | $133,292 | | (Loss) income from operations | ($17,176) | $31,624 | | **Net (loss) income** | **($19,047)** | **$25,446** | [Notes to Consolidated Financial Statements](index=87&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant transactions, goodwill impairment, debt, income taxes, and lease obligations, providing comprehensive financial policy and data disclosure - Note 2 details several major transactions: the wind-down and sale of the Rebecca Taylor business, the sale of Parker intellectual property, the sale of Vince intellectual property to ABG Vince for **$76.5 million** cash and a **25%** equity stake, and the P180 acquisition of a majority stake in the company[359](index=359&type=chunk)[363](index=363&type=chunk)[364](index=364&type=chunk)[377](index=377&type=chunk) - Note 3 explains that the entire goodwill balance of **$31,973 thousand** was written off in fiscal 2024 as an impairment charge, triggered by the P180 Acquisition which was used to determine the fair value of the reporting unit[382](index=382&type=chunk)[383](index=383&type=chunk) - Note 5 outlines the company's debt structure, including the **$85 million** 2023 Revolving Credit Facility and the Third Lien Credit Facility, which was significantly paid down and partially forgiven as part of the P180 acquisition[394](index=394&type=chunk)[415](index=415&type=chunk) - Note 11 discloses that due to an ownership change from the P180 acquisition, the future use of NOLs is subject to a Section 382 limitation, leading to a write-off of **$232.6 million** in gross federal NOLs[446](index=446&type=chunk) - Note 12 shows total future lease payments of **$131.7 million**, with a weighted-average remaining lease term of **7 years** and a discount rate of **7.15%**[453](index=453&type=chunk)[455](index=455&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=65&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants - The company reports no changes in or disagreements with its accountants[241](index=241&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls were ineffective due to a material weakness in IT general controls, for which a remediation plan is being implemented - The CEO and CFO concluded that disclosure controls and procedures were not effective as of the end of the fiscal year[244](index=244&type=chunk) - A material weakness in internal control over financial reporting exists due to inadequate IT general controls, specifically concerning user access and segregation of duties[250](index=250&type=chunk)[251](index=251&type=chunk) - Management is executing a remediation plan that includes modifying system access rights, performing user access recertifications, and improving processes for user provisioning and de-provisioning[253](index=253&type=chunk)[254](index=254&type=chunk)[259](index=259&type=chunk) [Other Information](index=67&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the fourth quarter of fiscal 2024 - No directors or officers engaged in new or modified 10b5-1 trading plans during the quarter ended February 1, 2025[257](index=257&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=67&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - This item is not applicable to the company[258](index=258&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=39&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive 2025 proxy statement - Information is incorporated by reference from the forthcoming proxy statement[261](index=261&type=chunk) [Executive Compensation](index=39&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's definitive 2025 proxy statement - Information is incorporated by reference from the forthcoming proxy statement[262](index=262&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=39&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's definitive 2025 proxy statement - Information is incorporated by reference from the forthcoming proxy statement[263](index=263&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=39&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's definitive 2025 proxy statement - Information is incorporated by reference from the forthcoming proxy statement[264](index=264&type=chunk) [Principal Accountant Fees and Services](index=39&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's definitive 2025 proxy statement - Information is incorporated by reference from the forthcoming proxy statement[265](index=265&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=39&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all exhibits filed with the 10-K, including financial statements, material contracts, and executive certifications - This section provides an index of all exhibits filed with the 10-K, including material agreements and executive certifications[267](index=267&type=chunk)[268](index=268&type=chunk) [Form 10-K Summary](index=43&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary for this item - The company provides no summary for this item[273](index=273&type=chunk)

Vince Holding (VNCE) Q4 2025 Earnings Call May 02, 2025 08:30 AM ET Company Participants Akiko Okuma - Chief Administrative Officer & General CounselBrendan Hoffman - CEO & DirectorYuji Okumura - CFOMichael Kupinski - Director of Research, Managing Director, Head of Technology Research Conference Call Participants Eric Beder - CEO & Senior Research Analyst Akiko Okuma Thank you, and good morning, everyone. Welcome to Vince Holding Corp. Fourth quarter and full year fiscal twenty twenty four results conferen ...

Financial Data and Key Metrics Changes - The company reported a net sales increase of 6.2% in Q4 fiscal 2024, reaching $80 million compared to $75.3 million in Q4 fiscal 2023. Excluding the impact of an extra week in the previous year, net sales increased approximately 9% [15] - Adjusted operating margin improved by 100 basis points despite relatively flat sales performance compared to the prior year [13] - Gross profit for Q4 was $40.1 million, representing 50.1% of net sales, up from 45.4% in the same quarter last year, driven by lower promotional activity and reduced product costs [16] Business Line Data and Key Metrics Changes - The wholesale segment saw a significant increase of 26.7%, which offset an 8.1% decline in the direct-to-consumer segment [15] - The direct-to-consumer business was impacted by store closures, remodels, and relocations, leading to inconsistent store sales performance [7][16] Market Data and Key Metrics Changes - The company continues to source over 60% of its cost of goods sold from China, with plans to reduce this exposure by moving about one-third of its sourcing outside of China [8][20] - The company is actively working on mitigation strategies to address the impact of evolving tariff policies on consumer behavior [7][20] Company Strategy and Development Direction - The company is focused on navigating the current dynamic environment while enhancing operational efficiencies and product costs [4][9] - There is an emphasis on expanding the men's business and enhancing relationships with wholesale partners, which are seen as critical for growth [6][7] - The transformation plan has delivered over $10 million in savings, which will now shift to manage tariff mitigation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current challenges due to the strong foundation built over the past year [4][9] - The company will not provide full-year guidance due to increased uncertainty regarding tariffs and consumer behavior [9][21] - For Q1 fiscal 2025, the company expects a sales decline of approximately 5% compared to the prior year, driven by planned store activities and shifts in wholesale shipments [23] Other Important Information - A non-cash goodwill impairment charge of $32 million was recorded due to a change in control of ownership [17] - The company is evaluating strategic price increases to absorb increased costs while maintaining value for consumers [9][33] Q&A Session Summary Question: What is the potential for expanding new product categories and store count? - Management is enthusiastic about expanding categories, particularly accessories, and has plans for new store openings in the U.S. and internationally [30][31] Question: How will the company market to core customers who can absorb price increases? - The focus is on full-price customers, with strategies in place to support this segment amid potential price increases [33] Question: Can the company quantify the revenue shift in wholesale? - The shift in wholesale revenue was not material for Q4, but it has significant implications for Q1 fiscal 2025 [39] Question: Will the tariff issue change product introduction plans? - There will be some SKU reduction, but the company is working to protect key items while adjusting sourcing strategies [41][42] Question: Has the strategy of shifting from airfreight to ship freight changed? - The company is currently using both methods to maintain flexibility in response to evolving tariff situations [44][45]

Financial Data and Key Metrics Changes - The company reported a net sales increase of 6.2% in Q4 fiscal 2024, reaching $80 million compared to $75.3 million in Q4 fiscal 2023, with a 9% increase when excluding the impact of an extra week in the prior year [15][16] - Adjusted operating margin improved by 100 basis points despite relatively flat sales performance year-over-year [14] - The net loss for Q4 was $28.3 million, or a loss per share of $2.24, compared to a net loss of $4.7 million, or a loss per share of $0.37, in the same period last year [20] Business Line Data and Key Metrics Changes - The wholesale segment saw a significant increase of 26.7%, which offset an 8.1% decrease in the direct-to-consumer segment [16] - The direct-to-consumer business was impacted by store closures, remodels, and relocations, leading to inconsistent store sales performance [8][16] - Gross profit for Q4 was $40.1 million, representing 50.1% of net sales, an increase from 45.4% in the prior year, driven by lower promotional activity and reduced product costs [17] Market Data and Key Metrics Changes - As of the end of fiscal 2024, over 60% of the company's cost of goods sold were sourced from China, highlighting significant exposure to tariff impacts [9][21] - The company is actively working on diversifying its sourcing base to mitigate tariff risks, planning to move about one-third of its exposure outside of China for fall products [9][21] Company Strategy and Development Direction - The company is focused on navigating evolving tariff policies and managing consumer behavior changes due to the dynamic market environment [8][10] - A transformation plan implemented over the past year has delivered $10 million in savings, which will now assist in managing tariff mitigation strategies [10] - The company is enthusiastic about expanding its product categories, particularly in accessories, and is planning new store openings in the U.S. and internationally [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current challenges due to the strong foundation built over the past year [10][12] - The company will not provide full-year guidance due to increased uncertainty regarding tariffs and consumer behavior [10][22] - For Q1 fiscal 2025, the company expects a sales decline of approximately 5% compared to the prior year, primarily due to planned store activities and shifts in wholesale shipments [23] Other Important Information - A non-cash goodwill impairment charge of $32 million was recorded in Q4 due to a change in control of ownership [18][19] - The company is evaluating strategic price increases to absorb increased costs associated with tariffs [10][21] Q&A Session Summary Question: Potential for new product categories and store expansion - Management is excited about the evolution of product categories, particularly in accessories, and is planning new store openings in the U.S. and London [30][31] Question: Marketing to core customers and price increases - The company has focused on full-price customers, which will support potential price increases due to tariffs [34] Question: Revenue shift in wholesale - The revenue shift in wholesale to Q4 was not material, as Q4 is a larger business compared to Q1 [40] Question: Impact of tariffs on product introductions - There will be some SKU reduction due to tariffs, but the company is confident in changing sourcing to protect key items [42] Question: Strategy on freight methods - The company is balancing between air and boat freight to maintain flexibility in response to tariff changes [45]

Financial Performance - Q4 FY2024 net sales increased 6.2% to $80.0 million compared to $75.3 million in Q4 FY2023, driven by strength in the wholesale channel[3] - FY2024 net sales totaled $293.5 million, a slight increase of 0.2% from $292.9 million in FY2023, primarily due to the wholesale channel performance[6] - Q4 FY2024 gross profit was $40.1 million, representing a gross margin of 50.1%, up from 45.4% in Q4 FY2023, with a 320 basis point improvement from lower promotional activity[3] - FY2024 gross profit increased to $145.2 million, or 49.5% of net sales, compared to $133.3 million, or 45.5% of net sales in FY2023[6] - The company reported a net loss of $28.3 million, or $(2.24) per share, in Q4 FY2024, compared to a net loss of $4.7 million, or $(0.37) per share, in the same period last year[6] - Adjusted income from operations for FY2024 was $7.3 million, compared to $4.0 million in FY2023, despite a loss from operations of $(17.2) million[6] Future Outlook - The company expects Q1 FY2025 net sales to decline approximately 5% and adjusted operating margin to decrease by approximately 500 basis points compared to the prior year[15] - Forward-looking statements indicate potential risks including changes in trade policies, cash flow maintenance, and competition in the apparel industry[25] Cost Management and Savings - The Transformation Program yielded over $10 million in savings during FY2024, with ongoing adjustments to mitigate tariff impacts[14] Debt and Equity - The company ended FY2024 with total borrowings of $19.2 million and $39.8 million of excess availability under its revolving credit facility[12] - Long-term debt stood at $19,156,443, a slight increase from $9,950,000[27] - Total equity was reported at $222,735,000, down from $225,149,000[27] Segment Reporting - The company has identified two reportable segments: Vince Wholesale and Vince Direct-to-consumer, following the winddown of Rebecca Taylor and Parker[10] Recent Performance Metrics - Net sales for the three months ended February 1, 2025, were $79.95 million, an increase from $75.31 million for the same period in 2024, representing a growth of 3.5%[26] - Gross profit for the three months ended February 1, 2025, was $40.08 million, with a gross margin of 50.1%, compared to a gross profit of $34.17 million and a margin of 45.4% in the prior year[26] - The company reported a net loss of $28.35 million for the three months ended February 1, 2025, compared to a net loss of $4.67 million for the same period in 2024[26] - Selling, general and administrative expenses were $37.78 million, accounting for 47.2% of net sales, slightly down from 47.6% in the previous year[26] - The impairment of goodwill amounted to $31.97 million for the three months ended February 1, 2025, which was not present in the same period of the previous year[26] - The company experienced a loss from operations of $29.67 million, compared to a loss of $1.68 million in the prior year, indicating a significant decline in operational performance[26] - Basic and diluted loss per share for the three months ended February 1, 2025, was $2.24, compared to a loss of $0.37 per share in the same period of 2024[26] - The weighted average shares outstanding for the three months ended February 1, 2025, were 12,636,277, compared to 12,503,472 in the prior year[26] Asset and Liability Management - Total current assets increased to $96,576,684 from $80,202,000[27] - Cash and cash equivalents rose to $607,000 from $357,000[27] - Total liabilities and stockholders' equity amounted to $222,735,000 compared to $225,149,000[27] - Current liabilities decreased to $73,546,661 from $42,828,000[27] - Accounts payable decreased to $35,090 from $31,678[27] - Accrued salaries and employee benefits increased to $87,093 from $96,967[27] - Total current liabilities decreased from $73,546,661 to $42,828,000[27] - Goodwill reported at $31,973,000, unchanged from previous figures[27] Year-End Financial Results - For the three months ended February 1, 2025, the net loss was $28,345,000, compared to a loss of $31,973,000 for the same period last year, reflecting an improvement of approximately 11%[29] - The loss from operations for the year ended February 1, 2025, was $17,176,000, while the adjusted loss was $7,318,000, indicating a significant reduction in operational losses[29] - The company reported a net income of $25,446,000 for the year ended February 3, 2024, with earnings per share of $2.04, compared to $2.57 in the previous year[31] - The interest expense for the year ended February 1, 2025, was $6,569,000, consistent with the previous year's figures, indicating stable financing costs[29] - The company recognized a goodwill impairment charge of $31,973,000 for the year ended February 1, 2025, which significantly impacted the reported income[29] - The equity in net income of equity method investments was $606,000 for the three months ended February 1, 2025, showing stable performance from these investments[29] - The company experienced a tax benefit of $3,006,000 due to the reversal of a non-cash deferred tax liability associated with the goodwill impairment[30] - The adjusted loss per share for the three months ended February 1, 2025, was $0.06, compared to a loss of $2.53 per share as reported[29] - The company reported a gain on the sale of a subsidiary amounting to $7,634,000 for the year ended February 3, 2024, contributing positively to the overall financial results[31] - The total transaction-related expenses for the year ended February 3, 2024, were $5,030,000, reflecting costs associated with strategic initiatives[31]

Valuation and Performance - Vince Holding Corp. (VNCE) is trading at a forward 12-month price-to-sales (P/S) ratio of 0.11, significantly lower than the industry average of 2.2 and the sector average of 1.82, indicating an attractive valuation [1] - Over the past three months, VNCE's stock has surged 63.5%, outperforming the industry growth of 3.5% and the sector's decline of 0.6%, while the S&P 500 dipped 1% [4] Investment Appeal - VNCE appears undervalued relative to its peers, with a Value Score of A, suggesting a favorable risk-reward profile for investors [2] - The company's outperformance reflects growing investor confidence in its ability to drive profitability through margin expansion and cost efficiencies [5] Brand and Operational Strengths - Vince Holding benefits from strong brand equity as a premium contemporary fashion label, maintaining pricing power and strong margins through high-quality materials and sophisticated designs [7] - The company has transitioned to a full-price selling model, improving its gross margin to 50% in Q3 2024 from 44.2% in the previous year [8] Sales and Growth Opportunities - Wholesale partnerships, particularly with Nordstrom, are a key strength, with the men's category contributing over 20% of total sales [9] - The company is expanding into new retail locations, including a new store in Nashville and a second store in London, to strengthen its direct-to-consumer presence [10] Challenges and Strategic Considerations - The direct-to-consumer segment experienced an 8.3% year-over-year sales decline in Q3 2024, attributed to reduced promotional activities and economic uncertainty [11] - Currency fluctuations, particularly a stronger U.S. dollar, may impact international wholesale demand and profitability [12]