Vince Holding Corp. · NASDAQ:VNCE
Vince — ICR Conference 2020
31 slides from Vince's conference presentation, Jan 13, 2020
Slide 1: Management Presentation
Management Presentation JANUARY 2020
Slide 2: Disclaimer
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
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS § Strategically positioned with contemporary fashion portfolio consisting of three highly recognized and distinct brands § Multiple actionable growth opportunities across brands § Potential to achieve meaningfully higher operating margin expansion through gross margin expan
Slide 4: Company Overview
COMPANY OVERVIEW 4
Slide 5: Sales and Channel Mix
SALES AND CHANNEL MIX / Annual Sales $295 - 305 Million $70 - 73 Million 2019F Channel Mix 25% 45% 55% 75% 5
Slide 6: Brand Positioning
BRAND POSITIONING LUXURY CLASSIC TREND MODERATE 6
Slide 7: Vince Brand Overview
VINCE BRAND OVERVIEW Well-positioned in the luxury market with a sophisticated, effortless, California-inspired fashion assortment Wholesale Ready to Wear Footwear (Women’s and Men’s) E-Commerce and Retail Stores Subscription Home Handbags 7
Slide 8: Rebecca Taylor Brand Overview
REBECCA TAYLOR BRAND OVERVIEW Highly-recognized contemporary brand known for its signature prints, dimensional texture and modern nostalgia with a sophisticated edge Wholesale Multi-Occasion Tops Dresses Knitwear E-Commerce and Retail Stores Subscription Jackets Outerwear Bottoms 8
Slide 9: Parker Brand Overview
PARKER BRAND OVERVIEW Easy-to-wear contemporary brand with strong customer following and flirty but sexy fashion assortment. Offers opening price point in the luxury contemporary space Wholesale Tops Dresses Knitwear E-Commerce Jackets Bottoms Black Collection 9
Slide 10: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES 10
Slide 11: Vince Growth Initiatives
VINCE GROWTH INITIATIVES Expand International Presence Fuel e-commerce growth Expand brand relevant product categories Open 2-3 net new stores in North America annually Drive brand engagement Explore acquisitions 11
Slide 12: International Expansion Strategy
INTERNATIONAL EXPANSION STRATEGY Distributed across more than 40 countries through premier department stores and specialty retailers around the world EUROPE: GREATER CHINA: § First London store opened September 2019 § Retail expansion planned to begin in Fall 2020 § Exploring potential new locations
Slide 13: E-Commerce Channel Overview
E-COMMERCE CHANNEL OVERVIEW § Double digit annual growth § Content-rich e-commerce site creates elevated customer engagement § Mobile application for iOS and Android offers elevated customer experience § Launched subscription service in the fourth quarter of 2018 § Plan to launch men’s in 2020 13
Slide 14: E-Commerce Growth Strategies
E-COMMERCE GROWTH STRATEGIES Drive higher AOV Growth opportunity through traffic and conversion initiatives Deliver more relevant traffic • Focus on full price product supported through video and elevated editorial Increase conversion • Deeper segmentation content • Greater understanding of where ou
Slide 15: Retail Expansion Strategies
RETAIL EXPANSION STRATEGIES § Open 2-3 stores annually TOTAL RETAIL STORE COUNT § Disciplined retail expansion strategy in non- gateway cities 80 § Focus on flexible leases Full-price Outlet ~70 ~73 70 ~67 • Reduces risk 59 64 60 • Attractive returns 54 55 15 48 14 50 • Increased real estate flexibi
Slide 16: Store Locations
STORE LOCATIONS 2018 Store Openings Short Hills (Short Hills Mall) Palm Desert (El Paseo) Naples (Waterside Shops) Austin (The Domain) Pacific Palisades (Palisades Village) Palm Beach (Palm Beach Gardens) 2019 Store Openings Miami (Aventura) Washington, DC (National Harbor Outlet) San Jose (Santana
Slide 17: Wholesale Growth Strategies
WHOLESALE GROWTH STRATEGIES Refined distribution through select global department and specialty PREMIER WHOLESALE PARTNERS stores, drove improved performance in 2019 Expect to drive continued growth in 2020 and beyond Drive penetration through best-positioned and Optimize pure play dramatically expa
Slide 18: Selfridges
SELFRIDGES VINCe. BEFORE AFTER
Slide 19: Nordstrom's
VINCe. NORDSTROM’S
Slide 20: Elevate Customer Journey
ELEVATE CUSTOMER JOURNEY Deliver a more impactful, customer-centric experience Invest in technology to elevate all touch-points of the customer journey Deliver more personalized engagement to drive higher customer retention Invest in both CRM technology and resources to improve clienteling through e
Slide 21: Expand Product Categories / Licensing Opportunities
EXPAND PRODUCT CATEGORIES / LICENSING OPPORTUNITIES CURRENT POTENTIAL FUTURE OPPORTUNITIES Handbags Cold Weather Accessories Intimates • Currently in DTC Home Travel • Target wholesale in FY 2021 H1 • Target international in FY 2021 Eyewear / Optical Accessories Extended Sizing (18-24) Fragrance • T
Slide 22: Rebecca Taylor Growth Initiatives
REBECCA TAYLOR GROWTH INITIATIVES Run Vince playbook across acquired brands • Hired Steven Cateron as Senior Creative Director Plan to swiftly re-capture the brand aesthetic Accelerate direct-to-consumer business • Open 10-20 new stores overtime using the Vince flexible leasing strategy • Grow e-com
Slide 23: Parker Growth Initiatives
PARKER GROWTH INITIATIVES Run Vince playbook across acquired brands • Hired Steven Cateron as Senior Creative Director Well-positioned small brand with significant growth potential Leverage resources to optimize market position and drive accelerated growth § New markets § Grow e-commerce leveraging
Slide 24: Select Senior Management Team
SELECT SENIOR MANAGEMENT TEAM EXECUTIVE JOINED YEARS OF EXPERIENCE BACKGROUND Brendan Hoffman Oct. 2015 29 CEO David Stefko Aug. 2015 39 EVP, CFO Caroline Belhumeur May 2017 35 Senior Creative Director, Vince Marie Fogel SVP, Merchandise Planning, Jan. 2017 36 Production & Product Development Craig
Slide 25: Financial Overview
FINANCIAL OVERVIEW 25
Slide 26: Summary Operating Analysis
SUMMARY OPERATING ANALYSIS DTC COMPARABLE SALES NET SALES BY SEGMENT ($ in millions) 15.0% 10.7% $450.0 10.0% 7.8% 6.1% $400.0 4.2% 4.5% $350.0 5.0% $279.0 $300.0 (1) $300.0 $268.2 $272.6 FY16 0.0% $250.0 $98.1 $106.5 $119.3 FY14 FY15 FY17 FY18 YTD Oct 19 $200.0 -5.0% $150.0 $300.0 $100.0 -10.0% $17
Slide 27: Working Capital
WORKING CAPITAL § Working capital is driven by seasonality of business WORKING CAPITAL (1) § Acquired businesses have same cycle $80,000 § We continue to make investments in working $70,000 capital as we grow the business and deliver on our strategic initiatives $60,000 $50,000 § Our primary cash ne
Slide 28: Enhanced Capital Structure
ENHANCED CAPITAL STRUCTURE § Enhanced capital structure by refinancing term loan facility and revolving credit facility in August 2018 which $60.0 has provided even greater financial flexibility to continue $50.2 $49.9 to execute on strategic initiatives $50.0 $46.5 $47.4 $33.0 $25.4 § Maturity of f
Slide 29: Synergies
SYNERGIES Opportunity for cost savings: § Leverage of talent § Economies of scale: § Fabric buys § Improved factory costs § Distribution centers § Freight consolidation § E-Commerce platform savings § Third party vendors 29
Slide 30: Financial Outlook
FINANCIAL OUTLOOK FY 2019 FY 2020 FY 2021 FY 2022 LOW-DOUBLE DIGIT LOW-DOUBLE DIGIT REVENUE $365M - $378M $378M - $392M GROWTH GROWTH LOW-DOUBLE DIGIT LOW-DOUBLE DIGIT VINCE REVENUE $295M - $305M $310M - $320M GROWTH GROWTH REBECCA TAYLOR / PARKER LOW-DOUBLE DIGIT $70M - $73M $68M - $72M MID-TEEN GR
Slide 31: REBECCA TAYLOR VINCe. Purbor
REBECCA TAYLOR VINCe. Purbor