Vince Holding Corp. · NASDAQ:VNCE
Vince — ICR Conference January 2022
40 slides from Vince's conference presentation, Jan 10, 2022
Slide 1: Vince. ICR January 2022
VINCE. ICR JANUARY 2022
Slide 2: Management Presentation 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: Who Are We?
ICR JANUARY 2021 VINCE IS A CONTEMPORARY FASHION PORTFOLIO CONSISTING OF HIGHLY RECOGNIZED AND DISTINCT BRANDS. WHO ARE WE ? VINCE REBECCA TAYLOR
Slide 4: Vince. Rebecca Taylor
VINCE. REBECCA TYALOR
Slide 5: Key Investment Highlights
Highly recognized brands which have strong customer loyalty Established multi-channel foundation for growth Potential for meaningful operating margin expansion Experienced management team – with success record to execute Financial flexibility to execute growth initiatives ICR JANUARY 2022 Key Invest
Slide 6: Vince company history timeline
VINCE. Vince is founded 2002 Acquisition of Vince by Kellwood 2006 Vince first adds Men’s Wear line 2007 Acquisition of Kellwood by Sun Capital in 2008 2010 CALERES 5 Launch of shoe license with Caleres 2012 NYSE Vince launches IPO in Q4 2013 Founders retire 2013 2014 Vince begins reset of product a
Slide 7: Competitive Landscape
ICR JANUARY 2022 Competitive Landscape CLASSIC TREND MODERATE LUXURY BRUNELLO CUCINELLI MaxMara VERONICA BEARD MICHAEL KORS Theory EILEEN FISHER THE ROW CELINE Chloe ISABEL ETOILE MARANT VINCE. rag & bone NEW YORK A.L.C. HELMUT LANG JAMES PERSE LOS ANGELES J.CREW EVERLANE DIANE VON FURSTENBERG FRAME
Slide 8: Portfolio Overview
• Cater to a high-end consumer • Complement brands with their own distinct aesthetic • Sustained strong brand equity • Benefit from leveraging talent and economies of scale including: • Distribution centers • Ecommerce platform synergies • Third party vendors • Streamlined organizational structure P
Slide 9: Vince
VINCE ICR JANUARY 2021
Slide 10: Our Ethos
VINCE IS AN ESTABLISHED LUXURY BRAND WITH A LOYAL CLIENTELE THAT APPRECIATES THE ETHOS OF ITS COASTAL HERITAGE, QUALITY AND SOPHISTICATED STYLE OUR ETHOS
Slide 11: The Vince Woman
• 25–55, with a sweet spot of approximately 40 • Urban and fashion aware • A successful professional or a social • stay-at-home mom • Confident, understated and always pulled together • Grounded and family oriented • Thoughtful; focused on quality, craftsmanship, and value The Vince Woman ICR JANUAR
Slide 12: The Vince Man
The Vince Man • 20–50 years old, with a sweet spot of approximately 35 • Successful, professional yet casual style • Confident, metropolitan and masculine • Focused on design, quality and comfort • On-trend but not fashion-forward • A modern thinking man — evolving his look ICR JANUARY 202
Slide 13: Competitive Strengths
ICR JANUARY 202 1110Competitive Strengths • Uniquely positioned with luxury sophisticated casual design aesthetic • Quality fabric, craftsmanship, and construction appeals to a bespoke customer • High brand loyalty following initial purchase • Multi-channel strategy established to broaden customer r
Slide 14: Product Assortments
ICR JANUARY 202 Product Assortments Women’s RTW Handbags Men’s RTW Footwear Accessories Home
Slide 15: Multi-channel Strategy
ICR JANUARY 2022 Multi-channel Strategy • Direct-to-Consumer estimated to surpass 50% of revenue in fiscal 2022 • Omnichannel expands customer reach and drives higher spend • Retail stores showcase full lifestyle assortment • Ecommerce brings elevated consumer engagement online • Wholesale most prof
Slide 16: Ecommerce Overview
ICR JANUARY 2022 Ecommerce Overview • Double-digit growth achieved in each of the last two years • Omnichannel efforts to date are yielding exceptional results as we capture a higher percentage of ecommerce demand with more to come in 2022 • Key focus for 2022 mobile optimization • Planned re-platfo
Slide 17: Retail Overview
ICR JANUARY 2022 Retail Overview VINCE FULL PRICE (51) VINCE OUTLET (18)
Slide 18: Wholesale Overview
ICR JANUARY 2022 Wholesale Overview Focused USA distribution into prestige wholesale accounts: • Nordstrom • Neiman Marcus • Bergdorf Goodman • Bloomingdales International presence with established global retail partners that align with brand aesthetic including: • Harrods, London • Harvey Nichols,
Slide 19: Growth Strategies
ICR JANUARY 2022 Growth Strategies • Product Innovations • Men's • Direct to Consumer • International
Slide 20: Product Extensions
ICR JANUARY 2022 Product Extensions • Soft Accessories • Cold Weather Accessories (licensed) • Expansion of Inclusive Sizing • Small Leather Goods • Expanded Footwear Collections (licensed) • Home
Slide 21: Product Collaborations & Activations
ICR JANUARY 2022 Product Collaborations & Activations • Product collaboration on Swimwear (Nu Swim) • Activation on Crafted (Nordstrom) • Omni Activation on Wardrobing (Bergdorf Goodman) • Product collaboration on Handbags (Kendal Conrad and Ester Ekme) • Product collaboration on Jewelry (Feris) • L
Slide 22: Ecommerce
ICR JANUARY 202220 Ecommerce Strategically investing in customer facing technologies to further expand omnichannel capabilities • Front-end re-platform will deliver an enhanced and consistent experience across online devises • Implement Customer Data Platform to improve segmentation and personalizat
Slide 23: Retail U.S.
ICR JANUARY 202220 • Retail expansion 100+ U.S. retail store potential • Omni-channel enhancements (BOPIS) will drive additional footsteps to stores • New market locations are also driving ecommerce traffic • Comprehensive real estate strategy • Sophisticated site selection process • High-end street
Slide 24: Wholesale
ICR JANUARY 2022 Wholesale • Expand with best-in-class wholesale partners • Selective department store strategy • Market share gains in Men's and Accessories • Expand floor space in Women's • Off price margin improvement • Enhanced profitability in this channel
Slide 25: International Growth
ICR JANUARY 2022 International Growth • China - Joint Venture planned leveraging local expertise • First retail door planned second half 2022 • Ecommerce presence on Tmall planned for Autumn 2022 • Additional stores and expansion of ecommerce planned in 2023 • Europe • Additional UK stores targeted
Slide 26: Rebecca Taylor
REBECCA TAYLOR
Slide 27: The Rebecca Taylor Woman
ICR JANUARY 2022 24• Mid 20's to early 50’s; sweet spot of approximately 35 • Sophisticated urban lifestyle • Confident and expressive • Aware of trends but values her own individuality The Rebecca Taylor Woman
Slide 28: Ecommerce
ICR JANUARY 2022 Ecommerce • Re-platform site to create: • Operational efficiencies and platform synergies • Optimization of Mobile • Enhanced customer experience • Implement CDP & Loyalty in 2022 • Implement consistent social strategy • Employ digital marketing strategies underpinned by data and te
Slide 29: Retail Strategy
ICR JANUARY 2022 Retail Strategy • Maximize full price selling • Use Pop up/Activation strategy in 6+ locations to enhance brand awareness • Optimize core Essentials merchandising strategy to build customer loyalty and repeat business
Slide 30: Wholesale
ICR JANUARY 2022 Wholesale • Leverage Vince relationships with prestige accounts • FY 2022 wholesale bookings to date trending +30% over 2021 • Partner with strategic accounts for joint marketing plans and to understand their customer demographics better
Slide 31: Financial Overview
Financial Overview ICR JANUARY 2021
Slide 32: Annual Net Sales Summary
ICR JANUARY 2022 Annual Net Sales Summary NET SALES BY SEGMENT ($ in millions) 31 $170.1 $166.1 $159.6 $166.8 $105.7 $143.7 $98.1 $106.5 $119.3 $133.4 $86.3 $122.0 $75.0 $27.8 $268.2 $272.6 $32.7 $279.0 $375.2 $219.9 $298.5 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 2016 2017 2018 201
Slide 33: Annual Net Sales % by Channel
ICR JANUARY 2022 Annual Net Sales % NET SALES BY CHANNEL (% of total) 32 Vince 63.4% 60.9% 57.2% 55.6% 55.1% 54.1% 36.6% 39.1% 42.8% 44.4% 44.9% 45.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017 2018 2019 2020 LTM Oct 2021 Wholesale Direct-to-Consumer Rebecca Taylor & Parker 74.5% 62.0% 61
Slide 34: Vince Direct-to-Consumer Comparable Sales Growth
ICR JANUARY 2022 Vince Direct-to-Consumer Comparable Sales Growth % COMPARABLE SALES 33 -16.2% 4.5% 10.7% 6.6% 7.2% 24.2% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2016 2017 2018 2019 2020 LTM Oct 21
Slide 35: Quarterly Summary Operating Analysis
ICR JANUARY 2022 Quarterly Summary Operating Analysis 34 1) Adjusted operating income/loss presented herein refers to the operating income/loss excluding the impact of impairment charges, TRA adjustments, and the acquisition of Rebecca Taylor and Parker. A reconciliation of these adjusted results, w
Slide 36: Capital Structure
ICR JANUARY 2022 Capital Structure • Enhanced capital structure on September 7, 2021, with a new $35.0M Term Loan replacing our prior $27.5M Term Loan, an amended Third Lien Loan and Revolving Credit Facility • Among others, this new loan and amendments: • Eliminate testing for a fixed charge covera
Slide 37: Executive Summary
Executive Summary ICR JANUARY 2021
Slide 38: Executive Summary
ICR JANUARY 2022 Wholesale partnerships with world class partners create market share opportunities Vince a corporation evolving with a clear focus into digital Significant growth opportunity in Asia & Europe 2022 targeted over 50% revenue generated by our DTC channels with significant positive marg
Slide 39: Three-Year Outlook (2024)
ICR JANUARY 2022 Three-Year Outlook (2024) 45.8% 44.7% METRIC TARGET DRIVERS Revenue Growth High Teens CAGR • Drive comp DTC through: • Digital marketing investments • Ecommerce enhancements • Product expansion • Men’s business • Wholesale penetration • International expansion Gross Margin ~ 50% Foc
Slide 40: Contact: Jack Schwefel, David Stefko
JACK SCHWEFEL CHIEF EXECUTIVE OFFICER JSCHWEFEL@VINCE.COM DAVID STEFKO CHIEF FINANCIAL OFFICER DSTEFKO@VINCE.COM