\nVince Holding Corp. (NYSE: VNCE) (\u201cVNCE\u201d or the \u201cCompany\u201d), a global contemporary retailer, today reported its financial results for the fourth quarter and fiscal 2022 ended January 28, 2023.<\/p>\n
\nHighlights for the fourth quarter ended January 28, 2023:<\/p>\n
- \n
- \nNet sales decreased 7.8% to $91.3 million as compared to $99.0 million in the same period last year reflecting an 8.0% decrease in Vince brand sales and a 6.4% decrease in Rebecca Taylor and Parker sales, combined.<\/p>\n<\/li>\n
- \nLoss from operations was $5.5 million compared to income from operations of $1.8 million in the same period last year. Loss from operations for the fourth quarter 2022 includes a $1.6 million gain on the sale of the Rebecca Taylor intangible assets, $3.7 million of net charges associated with the wind down of the Rebecca Taylor business*, and $1.0 million in non-cash charges related to the impairment of property and equipment for certain Vince retail locations. *See Summary of Rebecca Taylor Wind Down Charges table in Exhibit 3.<\/p>\n<\/li>\n
- \nNet loss was $11.0 million or $(0.89) per share compared to a net loss of $2.7 million or $(0.23) per share in the same period last year.<\/p>\n<\/li>\n<\/ul>\n
\nJack Schwefel, Chief Executive Officer of VNCE said, \u201cFiscal 2022 was a challenging year, but I am very proud of the resiliency of our teams, and believe, through the actions we have taken, we are well positioned to drive improved results and long-term success. During the fourth quarter we substantially completed the wind down of the Rebecca Taylor business and continued to take actions with respect to our inventory balance to end the year in a healthier position. As we look ahead, we will continue to operate with discipline while staying focused on our long-term strategic initiatives while leveraging our recent agreement with Authentic Brands Group.\u201d<\/p>\n
For the fourth quarter ended January 28, 2023:<\/i><\/b><\/p>\n
- \n
- \nTotal Company net sales decreased 7.8% to $91.3 million compared to $99.0 million in the fourth quarter of fiscal 2021.<\/p>\n<\/li>\n
- \nGross profit was $36.2 million, or 39.6% of net sales, compared to gross profit of $43.6 million, or 44.0% of net sales, in the fourth quarter of fiscal 2021. The decline in gross margin rate was due to an increase in promotional activity in the direct-to-consumer channel, a higher rate of sales allowances in the wholesale channel, and unfavorable year-over-year adjustments to inventory reserves, partially offset by favorable channel and product mix. The wind down of the Rebecca Taylor business negatively impacted fourth quarter 2022 gross margin rate by approximately 100 basis points.<\/p>\n<\/li>\n
- \nSelling, general, and administrative expenses were $42.3 million, or 46.3% of sales, compared to $41.8 million, or 42.2% of sales, in the fourth quarter of fiscal 2021. The increase in SG&A dollars was driven by the $3.3 million in net expenses related to the wind down of the Rebecca Taylor business and higher salaries and benefits, which offset lower marketing expenses as a result of the wind down of the Rebecca Taylor business, lower rent expense, as well as lower consulting and other third-party costs during the period.<\/p>\n<\/li>\n
- \nLoss from operations was $5.5 million compared to income from operations of $1.8 million in the same period last year. Loss from operations for the fourth quarter 2022 includes a $1.6 million gain on the sale of the Rebecca Taylor intangible assets, $3.7 million in net charges associated with the wind down of the Rebecca Taylor business, and $1.0 million in non-cash charges related to the impairment of property and equipment for certain Vince retail locations.<\/p>\n<\/li>\n
- \nIncome tax expense was $1.7 million as a result of an annual non-cash deferred tax expense created by the amortization of indefinite-lived goodwill and intangible assets for tax but not for book purposes.<\/p>\n<\/li>\n
- \nNet loss, which includes the benefit from the gain on the sale of the Rebecca Taylor intangible assets, the impact of net charges associated with the wind down of the Rebecca Taylor business, and the non-cash charges related to the impairment of property and equipment for certain Vince retail locations, was $11.0 million or $(0.89) per share compared to a net loss of $2.7 million or $(0.23) per share in the same period last year.<\/p>\n<\/li>\n
- \nThe Company ended the quarter with 67 company-operated Vince stores, a net decrease of 1 store since the fourth quarter of fiscal 2021.<\/p>\n<\/li>\n<\/ul>\n
Vince Fourth Quarter Highlights<\/b><\/p>\n
- \n
- \nNet sales decreased 8.0% to $80.3 million as compared to the fourth quarter of fiscal 2021.<\/p>\n<\/li>\n
- \nWholesale segment sales decreased 20.9% to $34.2 million compared to the fourth quarter of fiscal 2021.<\/p>\n<\/li>\n
- \nDirect-to-consumer segment sales increased 4.7% to $46.1 million compared to the fourth quarter of fiscal 2021.<\/p>\n<\/li>\n
- \nIncome from operations excluding unallocated corporate expenses was $9.4 million compared to income from operations of $15.9 million in the same period last year. The fourth quarter of fiscal 2022 income from operations includes $1.0 million in non-cash charges related to the impairment of property and equipment for certain Vince retail locations.<\/p>\n<\/li>\n<\/ul>\n
Rebecca Taylor and Parker Fourth Quarter Highlights<\/b><\/p>\n
- \n
- \nOn September 12, 2022, the Company announced the strategic decision to wind down its Rebecca Taylor business to focus its resources on the Vince brand. On December 22, 2022, the Company\u2019s indirectly wholly owned subsidiary, Rebecca Taylor, Inc., completed the sale of its intellectual property and certain related ancillary assets to RT IPCO, LLC, an affiliate of Ramani Group for $4.3 million and recognized a gain of $1.6 million.<\/p>\n<\/li>\n
- \nNet sales decreased 6.4% to $11.0 million as compared to the fourth quarter of fiscal 2021.<\/p>\n<\/li>\n
- \nLoss from operations was $1.1 million compared to a loss from operations of $1.3 million in the same period last year. The fourth quarter of fiscal 2022 loss from operations includes $3.7 million in net charges associated with the wind down of the Rebecca Taylor business as well as the $1.6 million gain on the sale of intangible assets.<\/p>\n<\/li>\n<\/ul>\n
Net Sales and Operating Results by Segment:<\/b><\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20230424005316\/en\/796170\/3\/VINCE_logo.jpg\"){kind=logo}
<\/td>\n<\/tr>\n