Vince.(VNCE) - 2026 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - Company reported a revenue of approximately $300 million and an Adjusted EBITDA of about $15 million, with a significant increase in gross profit from 38% in 2022 to 50% in 2024 [24][25] - Direct-to-consumer business grew nearly 10%, with e-commerce specifically seeing gains of over 20% [1][10] - Holiday sales performance showed a net sales increase of 5.3% year-over-year, with direct-to-consumer net sales growth at 9.7% [26][27] Business Line Data and Key Metrics Changes - The company has made a concerted effort to reduce promotions and discounting, leading to improved profitability and a focus on regular price selling [11][12] - Wholesale business has seen growth, particularly with key partners like Bloomingdale's and Nordstrom's, while monitoring the situation with Saks Global, which represents about 7% of sales [11][28] Market Data and Key Metrics Changes - The company operates over 800 points of distribution globally, with a focus on international growth as a strategic priority [2][12] - The company has opened new stores in smaller markets and plans to rationalize its store base based on profitability [14][15] Company Strategy and Development Direction - Strategic priorities include growing e-commerce, expanding the men's business, and maximizing the Vince Holding platform [17][22] - The partnership with Authentic Brands Group (ABG) is aimed at enhancing brand growth and diversifying product offerings beyond apparel [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the effectiveness of price adjustments in mitigating tariff impacts [10][11] - The company is optimistic about its growth trajectory into 2026, driven by improvements in e-commerce and direct-to-consumer channels [20][28] Other Important Information - The company has implemented a dropship capability, significantly increasing demand for its shoe business during the holiday season [19] - Management highlighted the importance of maintaining a stable and experienced team to drive product evolution and brand strength [3][4] Q&A Session Summary Question: How is the company addressing tariff impacts? - Management discussed strategic price adjustments and sourcing diversification to mitigate tariff exposure [9][10] Question: What are the growth expectations for the men's business? - The goal is to increase the men's business to 30% of total sales, leveraging partnerships with key retailers [21][22] Question: What are the plans for international expansion? - The company is considering investments in flagship cities in Europe to enhance brand exposure and growth [22][16]