Vince Holding Corp. · NASDAQ:VNCE
Vince — Investor Presentation (November 2018)
23 slides from Vince's investor presentation, Nov 1, 2018
Slide 1: Management Presentation
Management Presentation November 2018
Slide 2: Disclaimer
This Management Presentation (this “Presentation”) is the property of Vince Holding Corp. and its subsidiaries (collectively, “Vince” or the “Company”). By accepting this Presentation, the recipient acknowledges that it has read, understood and accepted the terms of this disclaimer. This Presentatio
Slide 3: Key Investment Highlights
Key Investment Highlights Leading Premium Contemporary Fashion Brand with Attractive Demographics High Brand Awareness and Strong Customer Loyalty Strategically Repositioned with Strong Momentum Actionable Growth Opportunities Experienced Management Team 3
Slide 4: Company Overview
Company Overview
Slide 5: Retail Segment Overview
Retail Segment Overview Provides critical customer touch point and ability to showcase full product line as well as test new products Disciplined new store opening strategy through minimal capital spend, favorable lease terms and site selection focused on capturing walk-away sales Total Retail Store
Slide 6: New Short Hills Vince Store Success
New Short Hills Vince Store Success Store opened in a location next to Bloomingdales on March 29, 2018 Strong contingent of former clients from Bloomingdales have migrated to the Vince store Capex was below historical levels on account of choosing landlords with ready-for-use locations Expected payb
Slide 7: Pacific Palisades Vince Store
Pacific Palisades Vince Store 7 Flagship store opened on October 10, 2018
Slide 8: E-Commerce Segment Overview
Content rich e-commerce site with robust capabilities to enhance the customer experience Full-featured, fully responsive e-commerce platform available on all devices across all browsers (redesign launched in July 2016) Recently launched mobile application for iOS and Android in November 2017 to buil
Slide 9: Wholesale Segment Overview
Includes sales to major department stores and specialty stores globally Strong relationships with high-quality, blue-chip customers such as Nordstrom and Neiman Marcus which include high-traffic online accounts Remaining runway for capture of additional walk-away sales along with further opportuniti
Slide 10: Growing Brand Awareness and Strong Customer Loyalty
Growing Brand Awareness and Strong Customer Loyalty Growing aided brand awareness and affinity in women’s business Aided brand awareness reached 48% in 2017, up from 23% in 2014 Brand affinity is up 7% from 2017 to 61%, the highest affinity in comparison to other brands(1) Underpenetrated aided bran
Slide 11: Senior Management Team
Senior Management Team Joined Vince in October 2015 Previous experience includes serving as CEO & President of Bon-Ton Stores, Inc. and Lord & Taylor L.L.C., where he was credited with revamping the Company’s brand Prior to that, he served six years as President and CEO of Neiman Marcus Direct, a su
Slide 12: Strategic Repositioning
Strategic Repositioning
Slide 13: A Multifaceted Strategy that Drives Profitability and Augments the Brand
E-commerce Mobile app launched Targeted e-commerce walk-away sales Utilize new insights from the CRM database Align international pricing with wholesale partners Online order with in-store pickup Omni-channel inventory Growth Opportunities Testing new product categories Additional licensing opportun
Slide 14: Growth Opportunities
Growth Opportunities LIGHT
Slide 15: New Store Strategy
New Store Strategy Plans to expand retail presence Real estate strategy de-risks new store openings through a disciplined approach focused on initially short term leases Pop-up stores are generally expected to achieve a payback within two years in order to be considered for conversion to a long-term
Slide 16: Drivers of Future E-Commerce Growth
Drivers of Future E-Commerce Growth Further optimization of paid search tactics Targeted on building brand awareness First international digital marketing test in select markets in H2 2018 Launched digital campaign to capture walk away business Suppress chargeback rate using new payment authorizatio
Slide 17: Expand Product Categories
Initiatives in place to build outerwear category with both Nordstrom and Neiman Marcus Continued development and evolution of handbags at mid-price range that speak to the brand Expand Product Categories A wide variety of adjacent product segments for Vince to further diversify and grow its product
Slide 18: Additional Licensing Opportunities
Additional Licensing Opportunities Note: Opportunity sizes based on IBIS and Euromonitor estimates for 2017 U.S. market sales 18 U.S. Market Size : ~$2bn Eyewear / Optical U.S. Market Size : ~$16bn Home Goods U.S. Market Size: ~$9bn Handbags U.S. Market Size : ~$14bn Accessories U.S. Market Size: ~
Slide 19: International Expansion
International Expansion 19 Strategic marketing initiatives to loyal and potential new customers via pop-up stores, PR, and digital media Expand wholesale presence and account base with potential for the opening of international retail stores Launch men’s business in both APAC and Middle Eastern coun
Slide 20: Financial Overview
Financial Overview
Slide 21: Summary Operating Analysis
Summary Operating Analysis Income Statement Summary Balance Sheet Summary ($ in millions) ($ in millions) 21 1H18 1H17 Net Sales 117.6 118.9 DTC Comparable Store Sales 13.3% (3.3)% Gross Margin 45.3% 43.0% Operating Loss 6.8 17.1 Net Loss 9.5 19.4 2Q18 2Q17 Cash 5.3 3.8 Total Debt 63.6(1) 72.0 Share
Slide 22: Summary Operating Analysis (Cont.)
Summary Operating Analysis (Cont.) Net Sales by Segment Adjusted Operating Loss(1) and Adj. Operating Loss Margin ($ in millions) ($ in millions) 22 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 DTC Comparable Sales Adjusted operating loss refers to the operating loss excluding the impact of retail store, goodwill,
Slide 23: Reconciliation Tables
Reconciliation Tables January 28, 2017 Goodwin As Retail Store Intangible As Reported Impairment sset Agjusted (GaaP) Charge impairment (Non-GAAP) Operating Loss $ (64672) $ (2,082) $ (53.061) $ (9,529) For the twelve months ended February 3, 2018 dw & As Retail Store Intangible As Reported Impairme
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