Vince.(VNCE)2025-05-02 11:00Financial 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]