\nVince Holding Corp. (NYSE:VNCE), a leading global contemporary group (\u201cVince\u201d or the \u201cCompany\u201d), today reported its financial results for the first quarter 2021 ended May 1, 2021.\n<\/p>\n
\nIn this press release, the Company is presenting its historical financial results in conformity with U.S. generally accepted accounting principles (“GAAP”) as well as on an “adjusted” basis. Adjusted results presented in this press release are non-GAAP financial measures. See “Non-GAAP Financial Measures” below for more information about the Company’s use of non-GAAP financial measures and Exhibit 3 to this press release for a reconciliation of GAAP measures to such non-GAAP measures.\n<\/p>\n
\nHighlights for the first quarter ended May 1, 2021:\n<\/p>\n
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- \nNet sales increased 47.5% to $57.5 million as compared to $39.0 million in the same period last year reflecting a 76.3% increase in Vince brand sales and a 33.6% decrease in Rebecca Taylor and Parker. The Company has paused the development of new product for Parker, which contributed to approximately two-thirds of the sales decline.\n<\/li>\n
- \nGross margin rate was 44.3% compared to 41.0% in the same period last year.\n<\/li>\n
- \nLoss from operations was $7.1 million compared to a loss from operations of $49.4 million in the same period last year. Excluding costs associated with non-cash asset impairment charges, adjusted loss from operations in the first quarter of fiscal 2020 was $22.5 million.\n<\/li>\n
- \nNet loss was $11.6 million or $0.98 per share compared to a net loss of $48.2 million or $4.12 per share in the same period last year. Excluding costs associated with non-cash asset impairment charges and a TRA adjustment of $2.3 million, adjusted net loss in the first quarter of fiscal 2020 was $23.6 million or $2.02 per share.\n<\/li>\n<\/ul>\n
\nJack Schwefel, Chief Executive Officer, commented, \u201cWe are pleased with the pace of recovery in our business as we begin to emerge from the pandemic with significant sequential improvement in our financial performance. Strong consumer demand for the Vince brand\u2019s effortless sophisticated luxury is reflected in both our retail and wholesale sell-through rates. Looking ahead, we will leverage the momentum in the brand as we continue to advance our global growth strategies. At Rebecca Taylor, we are highly encouraged by the positive response to the relaunch themed Romanticism Redefined. I remain excited about the longer-term potential for this brand as the strategies we are using, which are similar to those that led to the successful turnaround of the Vince brand, are beginning to show encouraging signs. Overall, our focus will remain on driving our initiatives forward while maintaining discipline in how we operate the business for long term profitable growth.\u201d\n<\/p>\n
For the first quarter ended May 1, 2021:<\/i><\/b><\/p>\n
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- \nTotal Company net sales increased 47.5% to $57.5 million compared to $39.0 million in the first quarter of fiscal 2020.\n<\/li>\n<\/ul>\n
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- \nGross profit was $25.5 million, or 44.3% of net sales, compared to gross profit of $16.0 million, or 41.0% of net sales, in the first quarter of fiscal 2020. The increase in the gross margin rate was primarily due to lower year-over-year adjustments to inventory reserves partially offset by channel mix.\n<\/li>\n<\/ul>\n
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- \nSelling, general, and administrative expenses, were $32.6 million, or 56.6% of sales, compared to $38.5 million, or 98.8% of sales, in the first quarter of fiscal 2020. The decrease in SG&A dollars was primarily the result of lower consulting and other third-party costs as well as decreased bad debt expense, payroll and compensation expense, and marketing expense.\n<\/li>\n<\/ul>\n
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- \nLoss from operations was $7.1 million compared to loss from operations of $49.4 million in the same period last year. Excluding costs associated with non-cash asset impairment charges, adjusted loss from operations in the first quarter of fiscal 2020 was $22.5 million. Please refer to Exhibit 3 for a reconciliation of GAAP measures to non-GAAP measures.\n<\/li>\n<\/ul>\n
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- \nIncome tax expense was $2.6 million as a result of the non-cash deferred tax expense created by the current period amortization of indefinite-lived goodwill and intangible assets for tax but not for book purposes.\n<\/li>\n<\/ul>\n
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- \nNet loss was $11.6 million or $0.98 per share compared to a net loss of $48.2 million or $4.12 per share in the same period last year. Excluding costs associated with non-cash asset impairment charges and a TRA adjustment of $2.3 million, adjusted net loss in the first quarter of fiscal 2020 was $23.6 million or $2.02 per share. Please refer to Exhibit 3 for a reconciliation of GAAP measures to non-GAAP measures.\n<\/li>\n<\/ul>\n
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- \nThe Company ended the quarter with 72 company-operated Vince and Rebecca Taylor stores, a net increase of 3 stores since the first quarter of fiscal 2020.\n<\/li>\n<\/ul>\n
Vince<\/b><\/p>\n
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- \nNet sales increased 76.3% to $50.7 million as compared to the first quarter of fiscal 2020.\n<\/li>\n<\/ul>\n
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- \nWholesale segment sales increased 150.6% to $26.8 million compared to the first quarter of fiscal 2020.\n<\/li>\n
- \nDirect-to-consumer segment sales increased 32.3% to $23.9 million compared to the first quarter of fiscal 2020.\n<\/li>\n<\/ul>\n
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- \nIncome from operations excluding unallocated corporate expenses was $7.2 million compared to a loss of $17.5 million in the same period last year. Fiscal 2020 includes non-cash asset impairment charges of $11.7 million.\n<\/li>\n<\/ul>\n
Rebecca Taylor and Parker<\/b><\/p>\n
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- \nNet sales decreased 33.6% to $6.8 million as compared to the first quarter of fiscal 2020. The Company has paused the development of new product for Parker, which contributed to approximately two-thirds of the sales decline.\n<\/li>\n
- \nLoss from operations was $3.3 million compared to a loss of $6.1 million in the same period last year. Fiscal 2020 includes non-cash asset impairment charges of $1.7 million.\n<\/li>\n<\/ul>\n
Net Sales and Operating Results by Segment:<\/b><\/p>\n
- \nIncome from operations excluding unallocated corporate expenses was $7.2 million compared to a loss of $17.5 million in the same period last year. Fiscal 2020 includes non-cash asset impairment charges of $11.7 million.\n<\/li>\n<\/ul>\n
- \nNet sales increased 76.3% to $50.7 million as compared to the first quarter of fiscal 2020.\n<\/li>\n<\/ul>\n
- \nThe Company ended the quarter with 72 company-operated Vince and Rebecca Taylor stores, a net increase of 3 stores since the first quarter of fiscal 2020.\n<\/li>\n<\/ul>\n
- \nNet loss was $11.6 million or $0.98 per share compared to a net loss of $48.2 million or $4.12 per share in the same period last year. Excluding costs associated with non-cash asset impairment charges and a TRA adjustment of $2.3 million, adjusted net loss in the first quarter of fiscal 2020 was $23.6 million or $2.02 per share. Please refer to Exhibit 3 for a reconciliation of GAAP measures to non-GAAP measures.\n<\/li>\n<\/ul>\n
- \nIncome tax expense was $2.6 million as a result of the non-cash deferred tax expense created by the current period amortization of indefinite-lived goodwill and intangible assets for tax but not for book purposes.\n<\/li>\n<\/ul>\n
- \nLoss from operations was $7.1 million compared to loss from operations of $49.4 million in the same period last year. Excluding costs associated with non-cash asset impairment charges, adjusted loss from operations in the first quarter of fiscal 2020 was $22.5 million. Please refer to Exhibit 3 for a reconciliation of GAAP measures to non-GAAP measures.\n<\/li>\n<\/ul>\n
- \nSelling, general, and administrative expenses, were $32.6 million, or 56.6% of sales, compared to $38.5 million, or 98.8% of sales, in the first quarter of fiscal 2020. The decrease in SG&A dollars was primarily the result of lower consulting and other third-party costs as well as decreased bad debt expense, payroll and compensation expense, and marketing expense.\n<\/li>\n<\/ul>\n
- \nGross profit was $25.5 million, or 44.3% of net sales, compared to gross profit of $16.0 million, or 41.0% of net sales, in the first quarter of fiscal 2020. The increase in the gross margin rate was primarily due to lower year-over-year adjustments to inventory reserves partially offset by channel mix.\n<\/li>\n<\/ul>\n
- \nTotal Company net sales increased 47.5% to $57.5 million compared to $39.0 million in the first quarter of fiscal 2020.\n<\/li>\n<\/ul>\n
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