Vince Holding Corp. · NASDAQ:VNCE
Vince — ICR Conference 2024
40 slides from Vince's conference presentation, Jan 9, 2024
Slide 1: ICR - January 2024
VINCe. ICR - JANUARY 2024
Slide 2: Disclaimer
Disclaimer This Management Presentation(this “Presentation”)is the property of Vince Holding Corp. andits subsidiaries (collectively, “Vince” or the “Company”). By accepting this Presentation, the recipient acknowledges that it has read, understood andaccepted the terms of this disclaimer. This Pres
Slide 3: Key Investment Highlights
01 02 03 04 OS 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 BRAND TIMELINE 2007 Launch of e-commerce, Vince first adds creating an additional menswear line revenue stream 2021 fabrics 2019 Introduce responsible 2023 —— 6 new retail stores opened including first international store (London, Sept. 2019) Authentic Brands Group — 2021 Jack
Slide 7: Product Categories
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
Slide 9: Key Brand Facts, Customer Research, Demographics, Positioning & Social
Slide 10: Key Brand Attributes that our Customers resonate with
Key Brand Attributes that our Customers resonate with F 7 Effortless, Confident ~ ‘S nduring i . 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: Vince is clearly positioned as a luxury brand with loyal affluent customers
Vince is clearly positioned as a luxury brand with it’s customer base affluent and loyal OUR CUSTOMER'S FAVORITE SWEATER BRANDS: 01 VINCe. 02 Theory 03 JCREW 04 EILEEN FISHER 05 rag & bone 06 jenni Kayne 07 RALPH LAUREN 82% say Vince is their favorite sweater brand +2022 Vince market research OUR CU
Slide 13: Our Collections Are Widely 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 ee feo 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: Social Stats
Social Stats T OT A L S OCIA L F OLLOWING A GE BRE A KDOWN GE NDE R BRE A KDOWN F OLLOWING BY RE GION 1.1M+ TOP AUDIENCE: TOP COUNTRY: Female 30-45 USA [ d ] 412K FOLLOWERS 13- 17 3% 80% US/CAN: 51% 0 248K FOLLOWERS 18- 20 8% 13% UK: 21- 24 4% 20% @ 17.8K FOLLOWERS 25- 29 20% MALE CHN/AUS: 26% 30- 3
Slide 17: Vince appears in prestige publications throughout the world
Vince is frequently reviewed and appears in prestige publications throughout the world WWD VOGUE VANITY FAIR BAZAAR GRAZIA AD eeautre WSJ ELLE = eveyone. = BOF RobbReport InStyle GLAMOUR INSIDEHOOK OFFICIEL ca W Preciow,jp —wnownar wean THIESBSTIMES _TOWNACOUNTRY MENS JOURNAL mariedaire © FIGARO-» S
Slide 18: Wholesale
Wholesale can be found across the wo premier global partnerships.
Slide 19: Premier Wholesale Partners
PREMIER WHOLESALE PARTNERS worostrom nai peRapont MITCHELLS Lane(rauyord SELFRIDGES! PRINTEMPS RINASCENTE WSETAN DAVID JONES fhineds E2Corle ngeo’ shopbop HYUNDAI HARVEY NICHOLS — WIYTHERESA blaamingdale's Oe a Sh Ai Foerue
Slide 20: Global Wholesale Breakout
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 party
Slide 21: Vince Stores
Slide 22: Sales and Distribution: Store Locations
S A L ES A ND D I S T R I BU T I ON 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 F ULL PR IC E O UTLET
Slide 23: E-commerce
E-commerce Soft Splendor
Slide 24: Website and Mobile App
WEBSITE 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 Nordic Fair ble Cardigan Mobile application for iOS and Android creates a rich
Slide 25: Strategic Partnership with Authentic Brands Group & Transformation Program
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
Slide 28: Strategic Growth Initiatives
Slide 29: 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: International Expansion Strategy: China
A view of our Shanghai store. 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 luxur
Slide 31: International Expansion Strategy: Europe
A view of our London store in Chelsea/South Kensington. 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/
Slide 32: 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: 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.
Slide 35: Financial Overview
Slide 36: Annual Vince Brand Net Sales
Annual Vince Brand Net Sales NET SALES BY SEGMENT ($ in millions) $450.0 $400.0 $350.0 $319.1 $300.2 $300.0 $279.0 $283.5 $268.2 $272.6 $250.0 $149.8 $133.4 $98.1 $106.5 $119.3 $135.7 $192.1 $200.0 $150.0 $86.3 $100.0 $170.1 $166.1 $159.6 $166.8 $169.4 $147.8 $50.0 $105.7 $0.0 2016 2017 2018 2019 20
Slide 37: Q3 Fiscal 2023 Vince Brand Results
Q3 Fiscal 2023 Vince Brand Results Q3 NET SALES ($ in millions) $89.7 Q3 Vince Total Net Sales Declined 6.2% vs. LY $84.1 Driven By: $34.7 $34.2 • Strategic Decision to Pullback Off-price Wholesale Business Given Improved Inventory Position $55.0 $49.9 • Ongoing challenging macro environment Q3 FY22
Slide 38: Balance Sheet
Balance Sheet • During Fiscal 2023 the Company took actions to strengthen its balance sheet: Net Funded Debt (USD M's) • With the proceeds from the Authentic transaction, the Company repaid FY 2022 YTD Q3-23 in full the outstanding balance under its Term Loan Credit Facility as 28-Jan-23 28-Oct-23 w
Slide 39: Key Investment Highlights
01 02 03 04 OS 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.