Vince Holding Corp. · NASDAQ:VNCE
Vince — Vince Holding Corp. Fall Investor Summit 2019
28 slides from Vince's conference presentation, Sep 16, 2019
Slide 1: Management Presentation
MANAGEMENT PRESENTATION September 2019
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 ▪ 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
VINCe. COMPANY OVERVIEW
Slide 5: About Vince
ABOUT VINCE ▪ Well-positioned in the luxury market with a sophisticated, effortless, California-inspired fashion assortment. ▪ Vince distributes elevated yet understated luxury pieces for everyday through: ▪ 61 retail locations in U.S. ▪ Vince.com ▪ Wholesale distribution including department stores
Slide 6: Brand Principles
BRAND PRINCIPLES ▪ Effortlessness / Sophisticated Ease Evoke effortlessness and maintain authenticity. Design comfortable yet refined pieces; approach dressing with a sense of ease ▪ Subtlety / Understated Find strength in the quiet and understated; find beauty in subtlety. Unexpected details make e
Slide 7: Story of the Iconic Vince Brand
STORY OF THE ICONIC VINCE BRAND Brendan Hoffman is Unfold (subscription Launch of e-commerce, hired as new CEO service) launches Vince first adds creating an additional revenue Have opened/opening 5-6 new menswear line stream Vince begins strategic retail stores, including first repositioning plan i
Slide 8: Retail Segment Overview
RETAIL SEGMENT OVERVIEW TOTAL RETAIL STORE COUNT ▪ Provides critical customer touch point and ability 80 Full-price Outlet to showcase full product line as well as test new 70 61 products 60 54 55 59 15 ▪ Disciplined retail expansion strategy 50 48 14 14 14 ▪ Focus on short term leases 40 37 14 28 9
Slide 9: 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 To Date Miami (Aventura) Washington, DC (National Harbor Outlet) San Jose (
Slide 10: Pacific Palisades Vince Store
PACIFIC PALISADES VINCE STORE ▪ Flagship store opened in October 2018 ▪ Offers full breadth of assortment and captures essence of the California-inspired brand positioning 10
Slide 11: E-Commerce Segment Overview
E-COMMERCE SEGMENT OVERVIEW ▪ Ecommerce channel has delivered double digit annual sales growth and momentum remains strong ▪ Content-rich e-commerce site with robust capabilities to enhance the customer experience ▪ Mobile application for iOS and Android creates a rich and engaging shopping experien
Slide 12: Wholesale Segment Overview
WHOLESALE SEGMENT OVERVIEW Premier Wholesale Partners ▪ 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 ▪ Third party ecommerce repres
Slide 13: Select Senior Management Team
SELECT SENIOR MANAGEMENT TEAM EXECUTIVE JOINED EXPERIENCE ▪ Previous experience includes serving as CEO & President of Bon-Ton Stores, Inc. and Lord & Brendan Hoffman Taylor L.L.C., where he was credited with revamping the Company’s brand Oct. 2015 CEO ▪ Prior to that, he served six years as Preside
Slide 14: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES 14
Slide 15: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES ▪ Selectively expand retail doors in U.S. markets ▪ Build international presence across retail, e-commerce and wholesale channels ▪ Drive brand engagement fueled by e-commerce strategy and the Customer Journey across channels ▪ Expand brand-relevant product categories an
Slide 16: Real Estate Expansion Strategy
REAL ESTATE EXPANSION STRATEGY ▪ Disciplined approach focused on short term leases ▪ Phase I: focus on locations near exited department stores to capture walk-away business ▪ Phase II: Open locations in non-gateway cities and additional stores in select existing gateway markets ▪ Short term lease st
Slide 17: Short Hills, NJ Store
SHORT HILLS, NJ STORE ▪ Store opened in a location next to Bloomingdale’s on March 2018 ▪ Exceeded payback period target of less than two years ▪ Success in capturing former clients of exited department stores ▪ Successfully extended lease for another short-term period while exploring a larger squar
Slide 18: International Expansion Strategy
INTERNATIONAL EXPANSION STRATEGY Vince products are sold across more than 40 countries through premier department stores and specialty retailers around the world EUROPE: CHINA: ▪ Company operates a showroom out of Paris to serve ▪ Actively exploring expansion plans within the region international ac
Slide 19: Ecommerce Growth Strategies
ECOMMERCE GROWTH STRATEGIES ▪ Expand omni-channel capabilities to wherever, whenever, and however she shops to: ▪ Enhance customer experience ▪ Improve productivity of inventory ▪ Increase conversion ▪ Drive traffic with more impactful and efficient marketing spend ▪ Drive higher AOV by customizing
Slide 20: Define the Customer Journey
DEFINE THE CUSTOMER JOURNEY ▪ Enhance brand loyalty by providing a personalized experience that exudes the Vince DNA through development of omni-channel capabilities and a 360 degree approach to customer engagement and management ▪ Focus on acquisition and retention ▪ Communicate the brand story thr
Slide 21: Expand Product Categories / Licensing Opportunities
EXPAND PRODUCT CATEGORIES / LICENSING OPPORTUNITIES Handbags Extending Sizing Cold Weather Accessories Intimates Home Athleisure Travel Eyewear / Optical Accessories Fragrance 21
Slide 22: Explore Acquisition Opportunities
EXPLORE ACQUISITION OPPORTUNITIES Diversify portfolio with complementary brands and/or categories. ▪ Provide global growth opportunities across distribution channels ▪ Offer strategic and operational synergies ▪ Expand product competencies 22
Slide 23: Financial Overview
VINCe. FINANCIAL OVERVIEW 23
Slide 24: Summary Operating Analysis
SUMMARY OPERATING ANALYSIS DTC COMPARABLE SALES NET SALES BY SEGMENT ($ in millions) $450.0 20.0% 16.7% 15.1% 15.4% $400.0 15.0% 12.7% $350.0 $300.0(1) $300.0 $268.2 $272.6 $279.0 10.0% 7.1% 4.3% $250.0 5.0% 3.1% $98.1 $106.5 $119.3 1.1% $200.0 FY 2016 1Q17 2Q17 0.0% $150.0 $300.0 $126.5 -0.2% $117.
Slide 25: Summary Operating Analysis
SUMMARY OPERATING ANALYSIS GROSS PROFIT AND GROSS PROFIT MARGIN ADJ. OPERATING INCOME/LOSS(1)(2) & ($ in millions) ADJ. OPERATING INCOME/LOSS MARGIN ($ in millions) 51.0% $10.0 0.05 49.8% $8.5 (1) 50.0% 46.9% 2.8% Adj. Operating Income / Loss Margin 45.8% 44.7% $5.8 49.0% 0.03 $5.0 2.1% 5.0% 48.0% A
Slide 26: Working Capital
WORKING CAPITAL ▪ Working capital is driven by seasonality of business WORKING CAPITAL (1) ▪ We continue to make investments in working capital as $80,000 we grow the business and deliver on our strategic $70,000 initiatives $60,000 ▪ Our primary cash needs are funding working capital $50,000 requir
Slide 27: Enhanced Capital Structure
ENHANCED CAPITAL STRUCTURE ▪ Enhanced capital structure by refinancing term loan facility and $70.0 $64.4 revolving credit facility in August 2018 which has provided even $60.0 greater financial flexibility to continue to execute on strategic $29.0 $50.2 $52.1 initiatives $49.9 $50.0 $46.5 $26.1 $40
Slide 28: Vince.
VINCE.
Vince Holding — Vince Holding Corp. Fall Investor Summit 2019 on 6ix