Vince.(US:VNCE)2022-06-09 18:56Financial Data and Key Metrics Changes - Total company net sales for Q1 2022 increased 36.2% to $78.4 million compared to $57.5 million in Q1 2021 [26] - Vince brand consolidated net sales increased 34.5% to $68.2 million compared to $50.7 million in the same prior year period [26] - Gross profit in Q1 was $35.6 million or 45.5% of net sales, up from $25.5 million or 44.3% of net sales in Q1 2021 [28] - Net loss for Q1 was $7.2 million or $0.60 loss per share compared to a net loss of $11.6 million or $0.98 loss per share in Q1 2021 [31] Business Line Data and Key Metrics Changes - Direct-to-consumer segment sales increased 45.3% to $34.8 million in Q1, exceeding 2019 levels [27] - Wholesale segment net sales increased 24.9% and also exceeded Q1 2019 sales levels [27] - Rebecca Taylor and Parker combined net sales increased 48.9% to $10.1 million compared to the same period last year, primarily driven by sales growth in Rebecca Taylor retail locations [27] Market Data and Key Metrics Changes - International business showed growth in full price sales, particularly in Korea and Australia, both of which grew double digits during the quarter [17] - The company opened one shop-in-shop in El Corte Inglés in Madrid and plans to open an initial location in Shanghai in Q3 [17] Company Strategy and Development Direction - The company is focused on driving growth in the everyday luxury category with a strong assortment of sophisticated casual items [7] - Plans to continue enhancing brand messaging and merchandising assortment for both Vince and Rebecca Taylor [23] - The company is investing in digital transformation and marketing strategies, including influencer marketing and social media campaigns [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's positioning despite ongoing supply chain challenges and inflationary pressures [5][12] - Anticipated gross margin pressure in Q2 due to unfavorable channel mix and supply chain cost inflation, but expects improvement in the back half of the year [34][35] - Management remains optimistic about the international business and plans for expansion in key markets [47] Other Important Information - The company announced the retirement of the CIO and the appointment of a new CIO effective July 5 [24] - Inventory levels increased to $83.3 million, reflecting higher pre-fall product and increased product costs [32] Q&A Session Summary Question: Can you tell us about product performance differences between men's and women's categories? - Management noted strong performance in men's return-to-work products and casual styles in women's, with similar sales trends in-store and online [39][40] Question: What are the expectations for inventory levels and price increases? - Management indicated an investment in inventory for Q2 to avoid missed sales opportunities and mentioned price increases for the fall season [42][43] Question: How is the company dealing with conservatism in wholesale orders? - Management acknowledged conservatism in wholesale but expressed confidence in relationships with key partners and ongoing collaboration [44] Question: What is the outlook for the international business? - Management reported solid growth in international markets, particularly in Spain, Australia, and Korea, with plans for further expansion [47]