Vince Holding Corp. · NASDAQ:VNCE
Vince — ICR Conference 2024
40 slides from Vince's conference presentation, Jan 8, 2024
Slide 1: ICR - January 2024
ICR - JANUARY 2024 99.2 EXHIBIT 99.1
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
01 02 03 04 0s KEY INVESTMENT HIGHLIGHTS Global Retailer/Wholesaler Operating a Leading Premium Contemporary Fashion Brand Attractive Demographics with Strong Customer Loyalty Strategically Positioned with Long Runway for Profitable Growth Strengthened Balance Sheet through Strategic Partnership wit
Slide 4: Brand Overview
BRAND OVERVIEW Vince crafts understated luxury with a California-inspired ease, embodying the aspirational, laid-back lifestyle and optimism of the west coast. We sell in over 800 locations Wholesale around the world as well as our own DTC channels. In 2002, our design atelier was established in L.A
Slide 5: Brand Principles
01 02 03 04 0s BRAND PRINCIPLES EFFORTLESS Evoke effortlessness and maintain authenticity. Design comfortable yet refined pieces; approach dressing with a sense of ease. UNDERSTATED Find strength in the quiet and understated; find beauty in subtlety. Unexpected details make each style feel distinct.
Slide 6: Brand Timeline
2002 Vince is founded 2007 Vince first adds menswear line BRAND TIMELINE Launch of e-commerce, creating an additional revenue stream 2021 Introduce responsible fabrics 2019 6 new retail stores opened including first international store (London, Sept. 2019) ll: 2021 Jack Schwefel is hired as new CEO.
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Slide 8: Current Product Categories
CURRENT PRODUCT CATEGORIES: WOMEN’S APPAREL Dresses Skirts Sweaters Jackets & Outerwear Shirts & Tops Swim T-Shirts Extended Sizing Pants & Shorts MEN’S APPAREL T-Shirts & Polos Sweatshirts & Hoodies Shirts Pants & Shorts Sweaters Jackets & Outerwear ACCESSORIES Footwear Home Scarves Baby Hats
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Slide 10: Key Brand Attributes that our Customers resonate with
Key Brand Attributes that our Customers resonate with F Effortless enduring ve Elevated \
Slide 11: Our Customer
Our Customer THE VINCE WOMAN The Vince woman appreciates subtlety, optimism and warmth. She embraces unexpected feminine details. Sophistication and ease are of equal importance. Travel and a global lifestyle influence her style choices. The Vince women’s collections are clean, effortless and femini
Slide 12: Our Customer's Favorite Brands
OUR CUSTOMER'S FAVORITE SWEATER BRANDS: 01 02 03 04 0s 06 07 82% say Vince is their favorite sweater brand VINCe. Theory JCREW EILEEN FISHER rag & bone JOURN Eselyive: RALPH LAUREN *2022 Vince market research OUR CUSTOMER'S FAVORITE LEATHER BRANDS: 01 02 03 04 0S 06 07 vINCce. GUCCI LOUIS VUITTON CH
Slide 13: Collections Appreciated By Key Opinion Formers
Our Collections Are Widely Appreciated By Key Opinion Formers Across The World
Slide 14: Martha Stewart, Greta Gerwig, Patrick Dempsey
Martha Stewart a Greta Gerwig Patrick Dempsey
Slide 15: Social Plays A Key Part In Our Communication Strategy
Social Plays A Key Part In Our Communication Strategy With Over 1 Million Followers
Slide 16: Total Social Following
TOTAL SOCIAL FOLLOWING 1.1M+ 412K FOLLOWERS 17.8K FOLLOWERS [d] 0 248K FOLLOWERS @ t§t 422K SUBSCRIBERS AGE BREAKDOWN TOP AUDIENCE: Female 30-45 3% -8% 13% 13-17 18-20 21-24 25-29 30-34 35-44 45+ -8% Social Stats 20% 26% 22% GENDER BREAKDOWN 80% 20% MALE FOLLOWING BY REGION TOP COUNTRY: USA US/CAN:
Slide 17: Vince Frequently Reviewed in Prestige Publications
Vince is frequently reviewed and appears in prestige publications throughout the world WWD VOGUE VANITY FAIR BAZAAR GRAZIA AJ) ssauitre WSJ ELLE = Aeon. = BOF Robb Report InStyle GLAMOUR _INSIDEHOoK LOFFICIEL ice] W Precious,jp_ WHOWHATWEAR THESUNDAY TIMES TOWN&COUNTRY MENS JOURNAL marie claire Fica
Slide 18: Wholesale
Wholesale ns can be found across the wo premier global partnerships,
Slide 19: Premier Wholesale Partners
PREMIER WHOLESALE PARTNERS NORDSTROM Noinaancu Era MITCHELLS Lane(ravyord SELFRIDGES PRINTEMPS RINASCENTE WSETAN DAVID JONES dhaneds E2Corle fngto’s shopbop HYUNDAI HARVEY NICHOLS = MYTHERESA DEPARTMENT STORE blaamingdale's lke Sat Sith Aoere
Slide 20: Wholesale
[A view of our activation inside Nordstrom's New York flagship store. Wholesale « Includes sales to major department stores and specialty stores globally + Strong relationships with high-quality partners such as Nordstrom and Nieman Marcus, which includes their high traffic online sites « Third part
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Slide 22: Sales and Distribution: Store Locations
Our stores are located in major cities coast to coast, in distinguished neighborhoods and prominent shopping malls. UNITED STATES: 49 Full Price 17 Outlet UNITED KINGDOM: 1 Full Price CHINA: 2 Full Price SALES AND DISTRIBUTION .A. FULL PRICE OUTLET
Slide 23: E-commerce
E-commerce
Slide 24: Website and Mobile App
WEBSITE Soft Splendor Ecommerce replatform launched September 2022. Upgrading digital experience to meet the expectations of modern consumers. Significant improvements made to site speed, mobile experience, and user journey. MOBILE APP p Nordic Fair Isle Cardigan Mobile application for iOS and Andro
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Slide 26: Strategic Partnership with Authentic Brands Group
STRATEGIC PARTNERSHIP WITH AUTHENTIC BRANDS GROUP On May 25, 2023 Vince Holding Corp. and Authentic Brands Group entered into a licensing arrangement whereby VNCE contributes its intellectual property to a newly formed “ABG Vince” entity for a total consideration of $76.5 million in cash from Authen
Slide 27: Transformation Program
TRANSFORMATION PROGRAM + Expected to Generate $30M+ in Cost Savings Over Next 3 Years to Offset ABG Royalty Expenses + The transformation program is focused on improving the company’s gross margin profile and driving cost efficiencies through, among other things: + Streamlining manufacturing and pro
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Slide 29: 1. Brand & DTC Forward Initiatives
1. BRAND & DTC FORWARD INITIATIVES During 2022/23 Vince invested in significant digital capabilities: + New eCommerce platform + New Consumer Data platform We now have greater insights into who our customer is and how they like to shop with us. This has allowed us to be more targeted with our Market
Slide 30: 2. International Expansion Strategy: China
2. INTERNATIONAL EXPANSION STRATEGY: CHINA + Opened first store in Shanghai in September 2022 + Opened Nanjing store in December 2023; Plans to open Beijing store in 2024 + Successful and growing wholesale business through Lane Crawford + Strong demand for fashion luxury and affinity for the Vince b
Slide 31: 3. International Expansion Strategy: Europe
3. INTERNATIONAL EXPANSION STRATEGY: EUROPE + Full time Paris showroom and office serving international accounts * Opened first company-operated store outside the U.S. in Chelsea/South Kensington area of London in September 2019 + Social media/Influencer program launched in London and Paris to furth
Slide 32: 4. Men's Growth Strategy
4. MEN'S GROWTH STRATEGY + Plan to increase men’s business to 30% of total revenue within 3 years; FY2022 penetration was 20% « Test Men’s only retail stores + Opened men’s store in Roosevelt Field Mall in April 2023 « Enhanced design team with new Vice President of Men’s Design, Kris Haig previousl
Slide 33: 5. DTC Store Strategies
5. DTC STORE STRATEGIES + Ongoing assessment of lease renewals to optimize rent expense, and where appropriate, secure key locations + Focus expansion onto the top 25 Retail Trade Areas + Selectively optimize retail doors in U.S. focused on locations luxury tenant adjacencies and areas near departme
Slide 34: Growth Initiatives
VINCE HOLDING CORP. (NYSE: VNCE) GROWTH INITIATIVES 1. Drive Brand engagement fueled by e-commerce strategy and the Customer Journey across channels 2. Expand international presence 3. Grow Men’s business to larger percentage of total sales mix 4. Enhance and selectively expand retail doors in U.S.
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Slide 36: Net Sales by Segment
NET SALES BY SEGMENT ($ in millions) $170.1 $166.1 $159.6 $166.8 $105.7 $147.8 $169.4 $98.1 $106.5 $119.3 $133.4 $86.3 $135.7 $149.8 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $450.0 $400.0 $350.0 2016 2017 2018 2019 2020 2021 2022 Wholesale Direct-to-consumer $268.2 $272.6 $279.0 $300.2 $192.1 $
Slide 37: Q3 Fiscal 2023 Vince Brand Results
Q3 FY22 Q3 FY23 Q3 NET SALES ($ in millions) $55.0 $49.9 $34.7 $34.2 Q3 FY23 Q3 FY22 Wholesale Direct-to-Consumer $15.0 $15.1 $89.7 $84.1 Q3 OPERATING INCOME ($ in millions) Q3 Vince Total Net Sales Declined 6.2% vs. LY Driven By: Strategic Decision to Pullback Off-price Wholesale Business Given Imp
Slide 38: Net Funded Debt
Net Funded Debt (USD M's) FY 2022 YTD Q3-23 28-Jan-23 28-Oct-23 TERM LOAN 32.9 - REVOLVER 58.5 29.4 THIRD LIEN FACILITY1 26.0 28.8 TOTAL DEBT 117.3 58.2 CASH 1.1 1.2 NET FUNDED DEBT 116.3 57.0 NET FUNDED DEBT (EXCL 3RD LIEN) 90.3 28.2 During Fiscal 2023 the Company took actions to strengthen its bal
Slide 39: Key Investment Highlights
01 02 03 04 0s KEY INVESTMENT HIGHLIGHTS Global Retailer/Wholesaler Operating a Leading Premium Contemporary Fashion Brand Attractive Demographics with Strong Customer Loyalty Strategically Positioned with Long Runway for Profitable Growth Strengthened Balance Sheet through Strategic Partnership wit
Slide 40: Vince
VINCE.