Vince Holding Corp. · NASDAQ:VNCE
Vince — William Blair Annual Growth Stock Conference 2014
41 slides from Vince's conference presentation, Jun 10, 2014
Slide 1: William Blair Annual Growth Stock Conference
VINCE. William Blair Annual Growth Stock Conference : June 10, 2014 CONFIDENTIAL
Slide 2: Forward-looking statements
This presentation includes forward-looking statements. Forward-looking statements reflect our current views with respect to, among other things, future events and performance. All statements other than statements of historical facts, including statements regarding our future operating results and fi
Slide 3: Today's Presenter + Agenda
Today’s Presenter + Agenda * Investment Highlights Brand Story Growth Initiatives Financial Performance Lisa Klinger Chief Financial Officer CONFIDENTIAL VINCE.
Slide 4: Investment Highlights
Investment Highlights VINCE.
Slide 5: Vince is...
Vince is... | r CONFIDENTIAL A LEADING CONTEMPORARY FASHION BRAND known for EVERYDAY LUXURY ESSENTIALS and MODERN EFFORTLESS STYLE VINCE.
Slide 6: Sales, Adj. Operating Income, Wholesale Doors and Retail Stores
Sales Adj. Operating Income (1) Global Wholesale Doors U.S. Retail Stores
Slide 7: Our Investment Highlights
Our Investment Highlights Prominent Accessible Luxury BRAND with Exceptional Customer Loyalty Strength Across Entire Multi-Channel PLATFORM Significant Revenue and Earnings MOMENTUM Clear Trajectory for Continued GROWTH Across Categories, Channels & Geographies World Class TEAM Driving Clearly Defin
Slide 8: Brand Story
Brand Story VINCE.
Slide 9: Our Video
Our Video ° VINCE. CONFIDENTIAL
Slide 10: Our Timeline: Where We Were, Where We Are
Our Timeline Where We Were > Where We Are Denim, Leath “70% A enim, Leather Product grits and ——— Core Expansion —-» and Outerwear —> Footwear —> ~30% Collections Tops Other ~85% . 5% Women’s —— Soe ton ——® Men’sLaunch ~————— Dual Gender Expansion ———_» |. == Women's Men's 80% Retail Channel Wholesa
Slide 11: Our Women's Product
Our Women’s Product Clean lines « luxe materials - rich textures - neutral color palette - exceptional fit » uncompromising quality Iconic Cashmere Luxurious Leather Sophisticated Soft Chic Outerwear Sweaters Wovens ‘ VINCE. CONFIDENTIAL
Slide 12: Our Men's Product
Our Men’s Product Modern and sophisticated aesthetic - luxe fabrics + core, classic color palette + recognized quality Iconic Knitwear Unique Outerwear Luxurious Leather Clean, Cool Denim : VINCE.
Slide 13: Our Competitive Positioning
Our Competitive Positioning VINCE HOLDS A UNIQUE POSITION THAT BRIDGES THE GAP BETWEEN CLASSIC AND FASHION-FORWARD WHILE OFFERING AFFORDABLE LUXURY PRICING 4 LUXURY soovsttvewwa{ CELINE Chloé ALEXANDER WANG RALPH LAUREN HELMUT LANG & MICHAEL KORS VINCE. rag & bone —S theory © CLASSIC FORWARD > JAMES
Slide 14: Leading Contemporary Brand with Premier U.S. Wholesale Partners
Leading Contemporary Brand with Premier U.S. Wholesale Partners #1 Contemporary Brand “) . BERGDORF Nein GO@)DMAN BARNEY'S Any NORDSTROM Ola@amingcale's 1,762 Doors « 11 Shop-in-Shops ©) BLOOMINGDALE’S CENTURY CITY WOMEN’S SHOP-IN-SHOP. (1) Based on information shared by wholesale partners. Updated
Slide 15: Growing Network of Premier International Wholesale Partners
Growing Network of Premier International Wholesale Partners International HARVEY NICHOLS HOLT RENFREW BROWN THOMAS RSETAN @ mitsu<osHi (1) Doorand shop-in-shop count as of June 5, 2014. V | N C E 14 . CONFIDENTIAL
Slide 16: Current U.S. Retail Footprint
Current U.S. Retail Footprint • • • •
Slide 17: Comparable Store Sales Growth
Comparable Store Sales Growth 34% 30% 29% 27% 23% 20% 19% 17% 15% 12% 12% 11% 9% 7% 5% 2% 2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014
Slide 18: eCommerce Website and Marketing
eCommerce Website eCommerce Marketing • • • • • •
Slide 19: Effortlessly Cool, Casually Sophisticated
Effortlessly Cool • Casually Sophisticated 44% 29% 30% 23% 23% 18% 13% 12% 9% 18-29 30-39 40-49 50-59 60+ <$50K $50- $100- $200K+ $100K $200K • 25 – 55 – with a sweet spot of 40+ • Metropolitan and fashion savvy • A successful professional or an active stay-at-home mom • Confident, understated and a
Slide 20: Pulled Together, Comfortable with his Own Style
Pulled Together • Comfortable with his Own Style 32% 33% 31% 31% 21% 23% 16% 10% 4% 18-29 30-39 40-49 50-59 60+ <$50K $50- $100- $200K+ $100K $200K • 20 – 50 years old – with a sweet spot of 35+ • Successful – working in a creative or professional field • Confident, metropolitan and masculine • Witt
Slide 21: Brand Awareness, Affinity and Purchase Intent
Aided Brand Awareness Brand Affinity Purchase Intent 20% 70% 54% Ralph Lauren 92% Ralph Lauren 61% Ralph Lauren 46% J.Crew 88% Kors 61% Kors 44% Kors 87% Theory 56% Tory Burch 36% DVF 75% Alice + Olivia 54% J.Crew 36% Tory Burch 54% Tory Burch 49% Theory 35% Chloe 54% DVF 47% Alice + Olivia 34% Theo
Slide 22: Our Vision
Our Vision TO ACCELERATE OUR EVOLUTION froma U.S. WHOLESALE DRIVEN WOMEN’S APPAREL BUSINESS toa GLOBAL MULTI-CHANNEL DUAL GENDER LIFESTYLE BRAND a VINCE. CONFIDENTIAL
Slide 23: Management Team
Name / Title Jill Lisa Karin Jill Beth Rebecca Michele Jay Deena Granoff Klinger Gregersen Steinberg Cohn Damavandi Sizemore Dubiner Gianoncelli Chief Executive Chief Financial President & SVP, SVP, Retail & Group Pres., SVP, SVP, General SVP, Human Officer Officer Chief Creative Wholesale eCommerce
Slide 24: Growth Initiatives
Growth Initiatives VINCE.
Slide 25: Growth Initiatives Overview
Capitalize on New and Existing Product Opportunities Maximize Wholesale Productivity Expand Retail Footprint Accelerate eCommerce Growth Drive International Expansion Increase Brand Awareness
Slide 26: Expand Existing Categories
Expand Become the Vince Launch New Ultimate Lifestyle Existing Categories Today Brand Categories
Slide 27: Global Shop-in-Shop Opportunity
Key Opportunities Global Shop-in-Shop Opportunity (1) • 38-51 12-15 • • 2015 & BEYOND ANNUALTARGET: +15-25 SIS 21 10 26-36 11 2 1 1 2012 2013 2014F
Slide 28: Retail White Space
100+ 25 35-36 28 75 22 6 19 3 2 19 22 17 2011 2012 2013 2014F White Space
Slide 29: Website Re-Launch Overview
Website Re-Launch Overview • • • •
Slide 30: Recent Growth Initiatives
Recent Growth Initiatives • • • Tokyo, Japan Store
Slide 31: Editorial Coverage, Out-of-Home, Lookbooks
Editorial Coverage Out-of-Home Lookbooks
Slide 32: Financial Performance
Financial Performance VINCE.
Slide 33: Net Sales and Adjusted Operating Income
$288 $301 $53 $240 $175 $40 $111 2010 2011 2012 2013 Q1 '14 LTM Q1'13 Q1'14 % Growth 57% 37% 20% 22% 21% 32% $59 $62 $50 $43 $22 $5 $2 2010 2011 2012 2013 Q1 '14 LTM Q1'13 Q1'14 % Margin 20% 24% 21% 21% 21% 4% 9%
Slide 34: Wholesale and Direct-to-Consumer Segment Sales
$229 $237 $203 $152 $96 $37 $29 2010 2011 2012 2013 Q1 '14 LTM Q1'13 Q1'14 % Growth 59% 34% 13% 16% 8% 29% % of Total 86% 87% 85% 80% 79% 72% 70% $64 $59 $37 $23 $16 $16 $11 2010 2011 2012 2013 Q1 '14 LTM Q1'13 Q1'14 % Growth 49% 60% 59% 52% 73% 42% % of Total 14% 13% 15% 20% 21% 28% 30% 34.3% 20.8%
Slide 35: Gross Profit and SG&A
• Expansion Opportunities $142 $26 $133 $108 Increased penetration of direct-to- $18 consumer segment & licensing business $86 $56 Enhanced supply chain processes Sourcing optimization 2010 2011 2012 2013 LTM Q1'13 Q1'14 Strategic pricing % Margin 50% 49% 45% 46% 47% 43% 49% $81 • Increased
Slide 36: Q1 2014 Results
YoY ($ in mm) Q1'13 Q1'14 Variance Total Net Sales $40.4 $53.5 32.4% Store Count 22 28 27.3% % Comp 34.3% 11.1% Gross Profit $17.5 $26.4 50.8% % Margin 43.4% 49.4% Adjusted SG&A (1) $14.3 $21.2 47.9% % Margin 35.5% 39.7% Adj. Income from Operations (1) $3.2 $5.2 64.1% % Margin 7.9% 9.7%
Slide 37: Cash, Debt and Leverage Metrics
Q1 2014 • Cash and Cash Equivalents $22 Long Term Debt $150 • Total Debt $150 Net Debt $128 • Q1 2014 LTM Adjusted EBITDA (1) $64 Leverage Metrics Total Debt / Adj. EBITDA 2.3x Net Debt / Adj. EBITDA 2.0x
Slide 38: 2014F White Space
100+ 25 35-36 28 75 22 6 19 3 16 2 1 17 19 22 15 2010 2011 2012 2013 2014F White Space
Slide 39: Why Invest in Vince?
Why Invest in Vince? VINCE. Winning brand with a global opportunity Powerful model delivering strong financial performance Strong momentum with multiple levers for long-term growth Best-In-Class management team to deliver on planned initiatives WINNING BRAND | WINNING FORMULA “ VINCE. CONFIDENTIAL
Slide 40: Appendix
Appendix VINCE.
Slide 41: Adjusted EBITDA Reconciliation
Fiscal Year * Q1 ($ in mm) 2011 2012 2013 Q1 '13 Q1 '14 Net Income (loss) ($41.9) ($29.7) $23.4 ($9.8) $1.4 Interest expense (1) 81.4 68.7 18.0 10.6 2.9 Provision for income taxes 3.0 1.2 7.3 0.9 0.9 D&A 1.7 2.0 2.8 0.6 1.0 EBITDA $44.2 $42.2 $51.5 $2.3 $6.2 Public company transition costs (2) - 9.3
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