Vince.(VNCE) - 2022 Q2 - Quarterly Report

FORM 10-Q Filing Information This section provides key details regarding the company's Form 10-Q filing, including its filer status and outstanding common stock Filing Details This Quarterly Report on Form 10-Q for Vince Holding Corp. details its status as a non-accelerated, smaller reporting company with 11.9 million shares outstanding - The registrant is a non-accelerated filer and a smaller reporting company[3][4] - As of August 31, 2021, the registrant had 11,926,443 shares of common stock, $0.01 par value per share, outstanding[4] Securities Registered Pursuant to Section 12(b) of the Exchange Act | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :---------------------------- | :---------------- | :---------------------------------------- | | Common Stock, $0.01 par value | VNCE | New York Stock Exchange | Table of Contents Part I. Financial Information This section presents condensed financial statements, management's discussion and analysis, market risk disclosures, and controls Part II. Other Information This section details legal proceedings, risk factors, equity sales, senior security defaults, mine safety disclosures, and exhibits Disclosures Regarding Forward-Looking Statements This section outlines the inherent risks and uncertainties associated with forward-looking statements within the report Forward-Looking Statements and Risks This section identifies forward-looking statements and outlines key risks, including COVID-19 impacts, asset impairment, economic conditions, and operational challenges - Forward-looking statements are identified by words like 'may,' 'will,' 'should,' 'believe,' 'expect,' 'seek,' 'anticipate,' 'intend,' 'estimate,' 'plan,' 'target,' 'project,' 'forecast,' 'envision' and similar phrases[8] - Key risks include the impact of the COVID-19 pandemic on business, results of operations and liquidity; ability to service debt and meet obligations; further impairment of goodwill and intangible assets; general economic conditions; ability to realize benefits of strategic initiatives; ability to maintain wholesale partners; and managing new CEO transition[8] - The company does not undertake to update or revise forward-looking statements unless required by law[8] PART I. FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS This section provides unaudited condensed consolidated financial statements, including balance sheets, income statements, equity statements, cash flows, and accompanying notes Unaudited Condensed Consolidated Balance Sheets This presents the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | Assets/Liabilities & Equity | July 31, 2021 | January 30, 2021 | | :-------------------------- | :------------ | :--------------- | | Assets | | | | Cash and cash equivalents | $1,524 | $3,777 | | Trade receivables, net | $31,158 | $31,878 | | Inventories, net | $74,336 | $68,226 | | Total current assets | $112,632 | $110,584 | | Total assets | $331,192 | $332,944 | | Liabilities | | | | Accounts payable | $50,789 | $40,216 | | Total current liabilities | $94,114 | $82,220 | | Long-term debt | $84,759 | $84,485 | | Total liabilities | $276,289 | $265,537 | | Stockholders' Equity | | | | Total stockholders' equity | $54,903 | $66,207 | | Total liabilities and equity| $331,192 | $332,944 | - Total assets decreased slightly from $332,944 thousand at January 30, 2021, to $331,192 thousand at July 31, 2021[11] - Total stockholders' equity decreased from $66,207 thousand to $54,903 thousand, indicating a reduction in equity over the period[11] Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) This section details the company's financial performance, including net sales, gross profit, and net income or loss Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended July 31, 2021 | Three Months Ended August 1, 2020 | Six Months Ended July 31, 2021 | Six Months Ended August 1, 2020 | | :-------------------------- | :------------------------------- | :-------------------------------- | :----------------------------- | :------------------------------ | | Net sales | $78,673 | $37,022 | $136,206 | $76,040 | | Gross profit | $35,378 | $13,340 | $60,861 | $29,340 | | Income (loss) from operations | $2,635 | $(14,008) | $(4,466) | $(63,426) | | Net loss | $(590) | $(15,062) | $(12,212) | $(63,240) | | Basic loss per share | $(0.05) | $(1.28) | $(1.03) | $(5.39) | | Diluted loss per share | $(0.05) | $(1.28) | $(1.03) | $(5.39) | - Net sales for the three months ended July 31, 2021, increased by 112.5% to $78,673 thousand from $37,022 thousand in the prior year, and for the six months, increased by 79.1% to $136,206 thousand from $76,040 thousand[12] - The company reported a reduced net loss of $(590) thousand for the three months ended July 31, 2021, compared to $(15,062) thousand in the prior year, and a reduced net loss of $(12,212) thousand for the six months, compared to $(63,240) thousand in the prior year[12] Unaudited Condensed Consolidated Statements of Stockholders' Equity This section outlines changes in the company's equity, reflecting net income, share-based compensation, and other adjustments Changes in Stockholders' Equity (in thousands) | Item | Six Months Ended July 31, 2021 | | :------------------------------------ | :----------------------------- | | Balance as of January 30, 2021 | $66,207 | | Net loss | $(12,212) | | Foreign currency translation adjustment | $9 | | Share-based compensation expense | $889 | | Restricted stock unit vestings | $1 | | Tax withholdings related to vesting | $(62) | | ESPP common stock issuance | $72 | | Balance as of July 31, 2021 | $54,903 | - Total stockholders' equity decreased from $66,207 thousand at January 30, 2021, to $54,903 thousand, primarily due to a net loss of $12,212 thousand[15] - Share-based compensation expense contributed $889 thousand to equity during the six months ended July 31, 2021[15] Unaudited Condensed Consolidated Statements of Cash Flows This section presents the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended July 31, 2021 | Six Months Ended August 1, 2020 | | :---------------------------- | :----------------------------- | :------------------------------ | | Net cash used in operating activities | $(290) | $(21,252) | | Net cash used in investing activities | $(1,919) | $(1,597) | | Net cash (used