Vince Holding Corp. · NASDAQ:VNCE
Vince — ICR Conference 2021
29 slides from Vince's conference presentation, Jan 11, 2021
Slide 1: Management Presentation
Management Presentation JANUARY 2021
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 highly recognized and distinct brands ▪ Multiple actionable growth opportunities across brands ▪ Potential to achieve meaningfully higher operating margin ▪ Experienced management team, with strong
Slide 4: 2020 Accomplishments
2020 ACCOMPLISHMENTS COVID RESPONSES BRAND UPDATES During 2020, our top priority was navigating the pandemic: Rebecca Taylor • Relaunched brand with Spring 2021 collection ▪ Implemented health and safety measures to protect • Realigned distribution strategy to drive full price associates and custome
Slide 5: Portfolio of Brands
PORTFOLIO OF BRANDS We have a portfolio of brands that each: ▪ Cater to a high-end consumer ▪ Complement each other with their own unique aesthetic ▪ Have strong brand equity Benefit from leveraging talent and economies of scale including: ▪ Distribution centers ▪ E-Commerce platform synergies ▪ Thi
Slide 6: Company Overview
COMPANY OVERVIEW 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: Vince Turnaround Results
VINCE TURNAROUND RESULTS Re-established strong brand positioning in contemporary fashion luxury market Pre-COVID: ▪ Sales increased 10% for the 2-year period ended February 1, 2020 - DTC grew 25% - Wholesale growth was flat due to successful refined distribution strategy ▪ Gross Margin expanded over
Slide 9: Rebecca Taylor Brand Overview
REBECCA TAYLOR BRAND OVERVIEW A contemporary womenswear line with strong brand recognition. Lauded for its signature prints, romantic detailing and vintage inspired aesthetic, Rebecca Taylor is reimagined for a modern era. Wholesale Multi-Occasion Tops Dresses Knitwear E-Commerce and Retail Stores S
Slide 10: Parker Brand Overview
PARKER BRAND OVERVIEW Easy-to-wear contemporary brand with strong customer following and flirty but sexy fashion assortment. Wholesale Tops Dresses Knitwear E-Commerce Jackets Bottoms Black Collection 10
Slide 11: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES 11
Slide 12: Vince Growth Initiatives
VINCE GROWTH INITIATIVES SHORT TERM: Fuel e-commerce growth through omni-channel capabilities and enhanced consumer engagement Enhance customer experience Continue to gain market share within wholesale channel Expand brand relevant product categories Selectively expand real estate presence to drive
Slide 13: E-Commerce Channel Overview
E-COMMERCE CHANNEL OVERVIEW ▪ Double digit annual growth ▪ Content-rich and mobile optimized 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 launc
Slide 14: E-Commerce Growth Strategies
E-COMMERCE GROWTH STRATEGIES Strategies in place to drive strong e-Commerce growth through higher traffic, conversion and AOV Expand omnichannel capabilities Deliver more relevant traffic • Consolidated inventory as first step to omnichannel - Enhanced ability to better serve • Implement CRM (FY22)
Slide 15: 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 16: Wholesale Growth Strategies
WHOLESALE GROWTH STRATEGIES Refined distribution through select global department and specialty stores, drove improved performance in 2019 PREMIER WHOLESALE PARTNERS Launched in Bloomingdale’s in Q3 FY20 and received positive initial response - Women’s launched online/dropship and in 10 doors (curre
Slide 17: Expand Product Categories / Licensing Opportunities
EXPAND PRODUCT CATEGORIES / LICENSING OPPORTUNITIES CURRENT POTENTIAL FUTURE OPPORTUNITIES Inclusive Sizing (18-24) Cold Weather Accessories Intimates • Currently in NYC Flagship store, vince.com and nordstrom.com • Target wholesale and international Home Travel Handbags Eyewear / Optical Accessorie
Slide 18: Inclusive Sizing
INCLUSIVE SIZING Launched in 3Q20 Marketing • Creates a more inclusive brand, generating positive brand affinity • Expands brand reach • Strategies to grow category / new customer awareness include: - Create product and editorial content across owned and operated channels - Focus digital marketing s
Slide 19: Retail Expansion Strategies
RETAIL EXPANSION STRATEGIES ▪ Market disruption created opportunistic short-term leases for 2021 ▪ Longer term, expect to return to cadence of opening 2-3 stores annually ▪ Disciplined retail expansion strategy in non-gateway cities ▪ Focus on flexible leases • Reduces risk • Attractive returns • In
Slide 20: 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: ▪ Launched collection in Alibaba Tmall Luxury Pavilion ▪ First London store opened September 2019 ▪ Potential partner initiated
Slide 21: Rebecca Taylor Accomplishments
REBECCA TAYLOR ACCOMPLISHMENTS Relaunching Rebecca Taylor with 2021 Spring collection, reestablishing brand aesthetic to its roots but reimagined for today’s consumer • To launch in stores in early February Opening retail locations with short-term favorable leases in 2021 to increase brand awareness
Slide 22: Rebecca Taylor Growth Initiatives
REBECCA TAYLOR GROWTH INITIATIVES Run Vince playbook across acquired brands Expand brand awareness • Grow e-commerce leveraging Vince expertise Accelerate international distribution in Europe and Asia Expand product classifications Achieve benefit from synergies Grow Rebecca Taylor RNTD (Rental Busi
Slide 23: Responsibility
RESPONSIBILITY In addition to our strategic initiatives, we are committed to being part of a conscious community ▪ Responsible Raw Materials ▪ Investigate mill practices and current certifications ▪ Use sustainable raw material options without compromising quality/cost ▪ Sustainability Practices ▪ I
Slide 24: Select Senior Management Team
SELECT SENIOR MANAGEMENT TEAM EXECUTIVE JOINED YEARS OF EXPERIENCE BACKGROUND David Stefko Aug. 2015 40 Interim CEO and CFO Caroline Belhumeur May 2017 36 Senior Creative Director, Vince Steven Cateron Jan. 2020 16 Senior Creative Director, Rebecca Taylor Marie Fogel SVP, Merchandise Planning, Produ
Slide 25: Financial Overview
FINANCIAL OVERVIEW 25
Slide 26: Annual Net Sales Summary
ANNUAL NET SALES SUMMARY NET SALES BY SEGMENT ($ in millions) $400.0 $375.2 $350.0 $75.0 $300.0 $279.0 $272.6 $268.2 $250.0 $133.4 $98.1 $106.5 $119.3 $200.0 $150.0 46.9% 45.8% 44.7% $100.0 $170.1 $166.1 $159.6 $166.8 $50.0 $0.0 2016 2017 2018 2019 Wholesale Direct-to-consumer Rebecca Taylor and Par
Slide 27: Quarterly Summary Operating Analysis
QUARTERLY SUMMARY OPERATING ANALYSIS NET SALES BY SEGMENT ($ in millions) ▪ Sequential topline improvement in 3Q20 from 2Q20 - Continued into 4Q20 $104.5 $100.0 $18.1 ▪ Delivered profitability excluding rent concessions $80.0 $69.0 $35.3 ▪ Increased excess availability under Revolving Credit Facilit
Slide 28: Capital Structure
CAPITAL STRUCTURE ▪ Enhanced capital structure on December 11, 2020 with completion of amendments to existing Term Loan and Revolving Credit Facilities simultaneous with close of a $20M 3rd Lien Term Loan Facility - Among others, the amendments: - Extended the period during which the testing under a
Slide 29: REBECCA TAYLOR VINCe. Purbor
REBECCA TAYLOR VINCe. Purbor